Each year since 2013, both corn and soybean futures prices have peaked somewhere between early April and mid-July. Farmers could pre-harvest market a portion of their new-crop corn and soybeans during the growing season at prices that proved to be much higher than those at harvest.
Farmers then deliver priced bushels at or shortly after harvest and avoided additional storage costs and interest charges while generating necessary cash flow for late fall and winter months.
“If farmers don’t take advantage of seasonal trends, they could be missing out on reducing storage costs and creating cash flow challenges” said Steve Johnson, farm management specialist with Iowa State University (ISU) Extension and Outreach. “Guessing when the highest futures price will occur is difficult and often ends in missed opportunities.”