Even though we are still in the midst of the growing season, the trade is already starting to focus on the upcoming harvest.
While yield is the first thing that comes to mind when harvest is mentioned, several other factors are considered as well. A primary one of these is storage availability and how this will impact fall logistics.
From the country prospective, farmers are trying to determine how large their developing crops will be and are marketing old-crop bushels accordingly.
Typically, the better a crop looks when it is growing, the more active a farmer is at selling old-crop bushels. Given the fact this year’s crop looks to be one of the larger in recent history, we will likely start to see elevated movement in the next few months.
Market values are a factor in this decision, though, as futures remain at depressed levels.
Aside from the need for space, quality is also becoming a determining factor in country movement. Old-crop inventory isn't as high quality as we have seen in recent years, and ...