— Matt Rettmann and John Cook, Grain Merchandising
As we approach harvest, our trade territory is in a fortunate position after great planting conditions and timely rains throughout much of the growing season. Other parts of the country have not been as lucky. Wet planting conditions in the eastern Corn Belt were followed by increased dryness to the west throughout the summer. Diminishing crop conditions, especially in corn, became clearer toward the end of the summer.
That realization during the late-season crop tours contributed to a rally of more than $1.00 per bushel in corn and nearly $2.00 in soybeans. It provided producers with a valuable opportunity to market old-crop corn and soybeans at prices we haven’t seen in several years. While that has been welcomed by farmers and grain companies alike, it has also created a challenge for elevators working to dump, handle and move those old-crop bushels before new-crop grain starts crossing the scales.
Throughout this past fiscal year, Central United has been fortunate to have markets available to move both crops. Corn has moved to local ethanol and feed mills, while our shuttle facilities have loaded numerous trains that traveled mainly to southwestern markets for feed or ethanol use. Soybeans, in contrast, have been more of a truck market, with bushels moving locally to processors.
A few factors have contributed to this. Crush margins have been very robust, making every bushel valuable. The Pacific Northwest (PNW) soybean shuttle market, which normally pulls bushels west via rail, was also largely covered by North and South Dakota’s large crop last harvest.
This year, with dryness to the west and China recently purchasing soybeans, the positive news is that the PNW market should provide opportunities for trains to leave our area. This should help keep basis on the stronger side, making our beans more valuable both domestically and to other importers.
Corn basis could prove to be a little more challenging throughout gut-slot harvest because of the wave of bushels moving ahead of harvest. However, with what looks to be a large crop in our territory, there should be opportunities to move those bushels to markets that need them later in the year and into 2027.
In the meantime, we continue working to move old-crop grain and create as much space as possible ahead of harvest. Even with those efforts, storage could get tight as harvest progresses. Now is a good time to think through how much grain you can hold on-farm, how much you may need to bring to the elevator and what your delivery plan looks like if space begins to tighten. Producers relying heavily on elevator space should also be prepared for the possibility of longer lines and unloading times as harvest moves along. Some locations may need to pile grain on the ground as space fills.
As we wrap up our first fiscal year as Central United Cooperative, we have worked to gain valuable insight into different grain flows and opportunities across our broader grain markets and, importantly, between our own facilities. That flexibility can be especially valuable during harvest. Conditions can vary from one location to another, so it may be worth considering another Central United delivery point when it helps keep your trucks moving.
For example, producers who typically haul to Klossner may want to keep Gibbon or Fairfax in mind if lines start to build. Depending on conditions, a few extra miles on the road could mean getting unloaded and back to the field sooner. The Klossner roundabout and the Highway 212/15 project near Brownton are now complete, which should help traffic move more smoothly in both areas. Updated harvest policies and traffic-flow information will be available on our website and at our locations throughout harvest.
Your plan should also include what you want to do with those bushels once they reach the elevator. Harvest typically isn’t the strongest time to make marketing decisions, so having a plan ahead of time can help. Cash contracts, HTAs, open storage and delayed pricing are among the options available depending on your operation and marketing goals.
With opportunities both in fall operations and in the grain markets, communication is key. Another tool to consider is having sell orders in at target prices. This can help you reach your pricing goals without having to keep a close eye on the markets while combines are rolling.
A strong crop is a good problem to have, and a little planning before harvest can go a long way toward keeping your grain moving and getting you back to the field.
If you have questions about delivery options, grain marketing or what may work best for your operation this harvest, give the Central United Grain Department a call at 507-232-1049.