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Veteran Advisor

As Combines Roll, Farmers Hold Onto Crop

Farmers from southern Texas to Mississippi are not in a big hurry to sell this year's fresh crop coming out of the field.

Grain marketing talk, along with yield reports in this story that I pieced together. And pictures, which are always fun to see.

 

Take a look:  Corn, Soybean Harvest Is Underway for Southern Farmers

 

Thanks,

 

Mike

 

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6 Replies
Veteran Advisor

Re: As Combines Roll, Farmers Hold Onto Crop

Farmers in KS are not in a hurry to sell, either.  The big reason is the buyers still consider now "old crop", and there is about 10-12 cents "carry" favoring new crop.

Veteran Contributor

Re: As Combines Roll, Farmers Hold Onto Crop

And the USDA will count it twice once as old crop and once as new as usual

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Honored Advisor

Re: As Combines Roll, Farmers Hold Onto Crop

Mike this was a nice article---- I was suprised at the content....... Were you suprised at the data?  I expected them to have decent corn away from the flood acres.

The decent ground down there has very high yield history........ I know the flood areas around the rivers are a big problem, but when their talking 130-160 bu/ac on the good ground --- that is not good.  way below average.

A couple of those harvest pictures look like poor quality like mold and disease problems that come with wet for long periods.

 

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Veteran Advisor

Re: As Combines Roll, Farmers Hold Onto Crop

sw363535,

 

Only one guy actually sounded happy about this year's harvest. The farmer on the Texas/Mexico border was pleased with his corn yields. The others sounded down about their yields and the whole season. I was surprised that some of the yields were as good as they were, based on how these guys were talking to me. But, I always find it interesting to see how the crops are coming out the fields, down south, before here in the Midwest. 

 

Thanks,

 

Mike

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Honored Advisor

Re: As Combines Roll, Farmers Hold Onto Crop

We all should be.   It is not many acres and is primarily export production that gets to sell into the best markets in the country  The gulf bid or our "open borders" exports to mexico.  They nearly always have a profitable price.  Weather and flooding is their risk.  

I thought his concern about "his" market was an interesting addition....and I appreciate you including it.

It is obvious the "no politics" approach to marketing is just irrational.   

I wondered how much of a premium he gets for corn........ He is not that far from the gulf bid which is usually $1 over southern Iowa barge bids.

He is expecting a premium  over gulf.. or the loss of it wouldn't be an issue............ it seemed.  

Interesting how much the "price" of grain changes between the field and the importing destination..... 

When we say US producers can't compete in foreign markets.  Is that really true.....?  Or is it too expensive to go through our antiquated process?  I remember how containerized shipping changed exports for manufactured goods.  Do we need to make a change in processes?

An acquaintence in Australia ships wheat by standing containers on end, loading and trucking to port his direct sales .  Second hand sourse all the way... I have not seen it or the details.  But what the importer pays and what the producer gets are very different issues........ or our price discovery tool is broken and we need to call "Flo" at progressive.

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Honored Advisor

Re: As Combines Roll, Farmers Hold Onto Crop

This one is a mess........    I would not doubt that there may be 20M acres of corn production "not harvested" this fall.

When you take all river bottom acres out of the southern crop that is a big % of the acres  and the best acres.  I am sure KS, tx panhandle, and okla are down  on th never planted acres.  Add in late season flooding in eastern ks.......  The acres are not there. and it is too obvious for usda not to know it now that signup is over.

 

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