MONTICELLO, Ill. (WCIA) — Farmers have the chance to sell both their old and new crops at amazing prices.
TopFlight Grain Merchandiser Jeremy Glauner at Monticello believes USDA was far from accurate in its estimate of grain on farms in March.
“They gave a statistic about Illinois, in particular, that on-farm stocks of corn are the same, year on year. Now if you talk with any of our farmers, on-farm stocks of corn are much lower, probably at least down 50 percent year on year, if not more. Soybeans are down even more than that. So what’s left on farm is down 10 percent, 15 percent, of last year’s on-farm.
Glauner said pre-harvest sales are much higher than normal.
“I would say by and large, we’re looking at corn at about 20 percent sold, for new crop, and beans at a little higher than that. 23, maybe, something like that. It’s in stark contrast to last year, Last year, you staring down the barrel at $2.85 corn, it was zero, you know,” he said. “And now they are in a much better situation. Higher prices, more selling and to me it makes a lot of sense, you got a rally, through April, based on, ‘Are you going to get in planted?’ Maybe we step back, it wouldn’t surprise me at all if we step back for 30 days, and then come mid-May to mid-June, we’ll have concerns about yields, and will the performance be enough. Right now, people have tight balance sheets for the forward, for the new crop, and that’s assuming record national yields. We’re at high prices, but we’re justified at high prices. I don’t see anyone in the old crop who is shutting down usage, but it the feeders, the ethanol, or the exports, because being at upper $6 really do a lot to dent demand yet. So I see why people are bullish.”