By Blake Jackson
While global stockpiles of corn and soybeans are plentiful, recent price drops might tempt Missouri farmers to sell their old crop supplies. However, the decision isn't straightforward.
There are signs corn prices may have bottomed out. Demand for ethanol production is rising as corn prices become more attractive. Additionally, US corn exports have picked up due to lower prices. This suggests a potential short-term price increase for corn.
However, a significant corn price rally is unlikely due to the large volume of unsold grain. Even if prices rise, Missouri farmers must consider storage costs. These include elevator fees, equipment maintenance, and grain spoilage. With current interest rates, storing corn might be a gamble.
Soybean prices face more pressure. While demand for renewable diesel production has boosted soybean crush volumes, a recent build-up in soybean oil stocks suggests demand may be softening. Additionally, US soybeans struggle to compete on the global market due to higher export prices compared to South American producers.
Overall, Missouri soybean farmers might be better off selling their old crop now, as prices could continue to decline. Corn prices may see a small rally, but Missouri farmers should carefully consider storage costs before holding onto their crop. Remember, these costs include not only elevator fees but also potential grain spoilage and equipment maintenance. With current interest rates, storing corn might not be financially beneficial. For more information visit https://ipm.missouri.edu/cropPest/2024/3/remembering_stored_corn_soybeans-bb/
Photo Credit: vecteezy-bergamont
Categories: Missouri, Crops, Corn, Soybeans