Export Uptick Brings Hope to Grain Markets

Export demand for U.S. corn and soybeans has improved for both commodities. This provides hope among farmers that prices will continue to improve.

According to Bryan Biegler who farms in southwest Minnesota, “It’s been nice seeing this little bump coming up here, certainly going to need higher prices just to cover input costs for next year. Margins are tight.”

“So hopefully we can keep a bump up going after harvest. I’m kind of feeling like everyone is going to be shutting the bin doors up and just sitting on the sidelines. The markets will have to do something to get the doors opened back up and get some grain shook loose.”

EDITOR’S TAKE:

Exports, especially for commodities like corn and soybeans, are subject to many variables. They are sensitive to domestic production, as well as production in other major exporting countries like Brazil and Argentina. Carryover stocks, domestic demand, weather at harvest time, and the relative strength of our currency to other exporting countries all play a role in determining what happens to our exports. It is encouraging to see a slight upward movement in U.S. exports and, consequently, grain prices. Hope for corn and soy producers brings optimism and that means a greater likelihood of more truck sales for CAD members. Also remember that you have some tools in your arsenal that other non-CAD members do not. AgPack®, for instance, allows you to offer up to $40,000 in exclusive rebates and discounts on products farmers and ranchers use in their operations. That means you can help them reduce operating costs and improve profit margins. Similarly, CADFI helps design payments matched to the income flow of their farm or ranch.