It’s hard to believe that summer is just about over. Schools are back in full swing, and county fairs are almost wrapped up. Our crops are nearing their final stages of growth, and before we know it, harvest will be just around the corner. Ready or not, here it comes.
As the growing season comes to an end, it’s time to start getting a grasp on the crop we will be anticipating. The Pro Farmer Midwest Crop Tour started up on Monday morning in South Dakota and Ohio. The tour will end, and final results will be tallied on Thursday, August 20th. The results from the tour thus far are coming in with a lot of variability. It will sure be interesting to see if this pattern continues through the rest of the week.
We’ve been talking a lot about the “rollercoaster like” markets. This last week was no exception to that statement. We’ve seen some highs, and now we are back towards our lows. The USDA released their monthly supply and demand report on August 12th, bringing with it news that most of the trade were not expecting. Unfortunately, the USDA is projecting an increase in yield for both corn and beans from their previous estimates. It seems as though our rollercoaster just took another swing lower and has lost momentum to get back above the next big obstacle.
It’s hard to argue that we aren’t going to have another great crop with the ideal growing conditions we’ve seen across much of our trade territory. Sure we can point out that some areas received hail and others may be thirsty for moisture, but overall we’ve been pretty fortunate. The question now becomes, how big will our crop actually be for our own operations? How does this change the logistics for our operation?
The potential of raising extra bushels will help our bottom line and give us more bushels to market, but what is our plan for those bushels? Do we have enough on-farm storage for the bushels we haven’t forward contracted? Do we have cash contracts to deliver against or do we have hedges in place that offer the flexibility of delivery destination and time? Now is the time to sit down with your ProEdge Risk Management Consultant or your ProEdge Grain Specialist to determine your next plan of action. As I said, harvest isn’t too far away if you consider how fast the past few months have gone by.