Grain Markets Rally Ahead of Harvest: Analysts Urge Caution

Grain prices are on an unusual upswing ahead of harvest, but DTN lead market analyst Rhett Montgomery advises farmers to resist the temptation to wait for a perfect price. Instead, he recommends evaluating profitability, managing risk, and building a marketing plan that can withstand market volatility.

Montgomery stresses the importance of knowing costs and what price works for each operation. If a certain price provides an acceptable return, producers don't necessarily need to hold out for a higher number.

For example, if a $5 plus cash sale makes sense for corn operations, it's possible that prices could test $6 eventually through the marketing season. However, Montgomery notes that selling $5 corn has rarely been a bad decision in recent years.