Selling corn under $4 per bushel is not fun for anyone, but it will be a reality for Nebraska producers this year.
This item is available in full to subscribers.
To continue reading, you will need to either log in to your subscriber account, or purchase a new subscription.
If you are a current print subscriber, you can set up a free website account and connect your subscription to it by clicking here.
If you are a digital subscriber with an active, online-only subscription then you already have an account here. Just reset your password if you've not yet logged in to your account on this new site.
Otherwise, click here to view your options for subscribing.
Please log in to continue |
SCOTTSBLUFF, Neb. – Selling corn under $4 per bushel is not fun for anyone, but it will be a reality for Nebraska producers this year. Despite low prices, there will be opportunities for savvy marketers.
The 2018 marketing year is shaping up to be a similar situation in corn to that experienced in 2017. Here we will review some of the challenges producers faced in 2017 and how to avoid them in 2018.
In 2017, corn accumulated a record amount of global ending stock, placing downward pressure on corn prices. Without a major market jolt, we can expect 2018 corn prices to be shaped by this large quantity of corn.
Basis
Challenge: Because of the high volume of corn available, basis has been weak across the state. Grain buyers (elevators, ethanol facilities, feed yards) have access to plenty of grain and do not need to improve basis to attract farmers to sell. Remember basis values, especially for new crop, seldom change throughout the year. Furthermore, changes that take place are likely to be minimal (a few cents). Do not let a weak, unwavering basis keep you from selling grain when futures prices spike.