The weather in 2019 has thrown many producers across the country for a loop. If they haven’t had their growing season affected by floods, drought, or storms, they have had to deal with the uncertainty of a lower marketplace. Trying to predict what you will need to do for 2019 may be the toughest choice you make this year. Many people are going to be watching for signs of a strengthening market.
Matt Bennett is a grain marketing consultant with Channel seeds. He says 2019 has been an atypical year and that has made marketing anybody’s guess.
Bennett says this marketing year is like 1993, where the market peaked early, and then went down. A lot of farmers are wondering if we will have a similar fall to 1993 where we set a high in the fall. Bennet says we won’t see the market rebound until the extent of damage is known in production. We could know by the November crop reports, but more than likely it will be closer to the January 2020 report.
Bennett says to keep an eye on the basis numbers. He says basis won’t completely restore what the markets lost, but it could get interesting if we run into some uncertainty.
Bennett says the keys for all producers is to have a solid marketing plan in place during harvest, but make sure it is flexible enough to allow for changes.