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Slower harvest helping grain prices

A grain analyst says difficult harvest conditions have provided a boost to farmers’ basis.

“We were anticipating a pretty significant widening of basis due to the carryover from old crop and the amount of crop supplies that we were expecting to come off, so the slow harvest has almost been a blessing in disguise.”

Angie Setzer with Michigan-based Citizens Elevator tells Brownfield she doubts if the supply pipeline could have managed both the old crop carryover and current production if farmers had warmer and drier harvest conditions. But she says the less than ideal weather won’t have much impact on total production.  “Yield wise, we shouldn’t see a significant reduction over all, it’s just more of a headache, a struggle, we could start to see some problems start to pop up with quality.”

Setzer says now is a good time for farmers to set goals on the cash flow they need based off of the production numbers they’re seeing in the field and get a marketing plan in place with their buyer.

AUDIO: Interview with Angie Setzer