Unpriced & Unsold Corn May Haunt Farmers into Fall

Markets Post August Report 081519
Moldy corn ears ( Darrell Smith )

After two months of volatile weather, planting delays and rising grain prices, markets are right back where they started.

In an interview with AgDay's Clinton Griffiths, Tommy Grisafi of Advance Trading says USDA August report left many farmers with questions. 

"It's confusing for some of the clients we have that have prevent plant or the folks who only sold half as much corn seed as they normally do, they're scratching their head," says Grisafi. "When corn rallied from $3.70 to $4.70 it sent a signal out to anyone on any acre go plant corn."

Grisafi says time will tell how many of those acres prove out but for now, each person needs to look at their own situation.

"I have a horrible feeling there's a bunch of people out there who went and planted what they thought was going to be $5 corn and now they're going to have sticker shock," says Grisafi. "If you have a grower out there who planted a lot of bushels really late in June and they have nothing sold and they're unprotected that could be really ugly."

Even as USDA counts 90 million acres of corn, Grasifi says it's unlikely all of that corn will make it to harvest. 

"So definitely there's going to be corn that was planted that won't do well," says Grisafi. "I don't even know if it'll make silage, but they went and planted corn."

He says much of the year still hangs on the Fall weather. 

"Those harvested acres numbers could be the real shocker here in months to come," says Grisafi.
 

Related Stories:

Corn Yield Revision Hurts Market Potential

President Jabs U.S. Wheat Exports To Japan, Growers React

Comments