Author: Author: Nathan Harris, Ag Optimus, Akron, IA Branch
The July Corn chart below shows the picture quite clearly. We’ve made a round trip back to the early May highs of $5.20. This is the first major objective for those of us holding old crop corn supply. We feel it’s a good idea to reward this rally with sales.
If you have on-farm storage, I’d consider using a hedge-to-arrive approach, locking in futures price and waiting to establish basis later. The flat price rally has allowed end users to source corn more easily, keeping basis soft for now. Once the farmer’s focus turns to planting the ’25 crop, procuring physical corn will become a tougher task for buyers. We anticipate old crop basis firming this spring.
The SA corn crop is the market’s main focus at the moment. We’ll soon turn our attention to this year’s planting season, and the growing conditions thereafter. Any sign of trouble this summer will send the end user scrambling, as old crop carryout of 1.5b or less is too tight for comfort.
Give us a call if you’d like to discuss your options! 📞 712-435-7879
