Soybean prices saw a roughly 30-cent drop in a week, but prices were trading at levels producers weren’t expecting. As combines across the country roll, some producers are grappling with the question: should I sell my soybeans off the combine or should I store them?
“It’s an opportunity brought about by several different things—the dry finish of the growing season, exceptional record buying from China, and purchases by the speculative sector in the futures market,” said Brian Basting of Advanced Trading. “There’d be nothing wrong with taking advantage of this opportunity.”
Basting said that he would encourage producers to lock in the floor as part of a good risk management strategy.
“If the market were to continue to go higher for a variety of reasons, it should be nice to participate in that,” he said. “A producer might consider buying a call option in conjunction with that sale across the scales or a minimum price contract. Every operation is different.”
Producers in the southern hemisphere are in the tractor ready to plant next year’s crop. Reports out of Brazil have been dry, and harvest is getting off to a slow start, according to Basting.
“It’s off to a bit of a slow and uneven start,” he said. “The wet season in Brazil typically begins in October, so it’s premature to say it’s a serious problem—it’s something to be aware of.”
Basting talks about record sales on the books to China and how USDA will be releasing its grain stocks report this week in his full comments in the audio above.
