ST. PAUL, Minn. (RFD-TV) — Farmers in parts of the northern and western Corn Belt are seeing an unusual market situation as rain delays harvest, with some local grain prices rising above futures prices.
University of Minnesota agricultural economist Ed Usset says the unusual market conditions have created a temporary boost in local prices.
“It’s a very event-specific bump in the basis. We’ve got these rains that have delayed the harvest. You’ve got a lot of buyers at these soybean plants who, three, four weeks ago, you’re coming into harvest, and you’re like, ‘Hey, absolutely minimize your ownership because the cheaper beans are coming in in a matter of a couple of weeks.’ So, they run their stocks down to the bare minimum. And then, here comes the rain delays.”
Usset says the stronger basis will likely disappear quickly once fields dry out and harvest resumes.
