URBANA, Ill. (RFD-TV) — Corn growers are seeing more pressure on prices this harvest after USDA found more bushels in this year’s crop.
Ag economist Joe Janzen says where that pressure is felt depends on where producers are in the Corn Belt.
“We find that the harvest low tends to be concentrated in the center of the Corn Belt, so places like Missouri, Illinois, Indiana, where you’re right in the main flow of grain and it’s really difficult to sort of say, well, grain is everywhere, no one’s going to provide a really strong incentive to deliver in normal circumstances. That basis low tends to be a little bit smaller outside in the periphery where people are maybe more willing to sit on and store grain most of the time.”
Corn futures fell sharply after the latest WASDE report but later recovered. USDA also raised its corn export forecast by 25 million bushels, pointing to stronger demand ahead.
Ag economists say the price pressure comes at a tough time for producers as new crop insurance prices are set and input costs remain high.
