Grain Prices Rally Ahead of Harvest: What Farmers Should Do Next

Grain prices are on an unusual upward trend heading into harvest season, but DTN lead market analyst Rhett Montgomery advises farmers not to wait for a perfect price. Instead, he suggests evaluating profitability, managing risk, and building a marketing plan that can withstand volatility.

Montgomery emphasizes the importance of knowing costs and what price works for each operation. He notes that if a $5+ cash sale makes sense for a farm, it's not necessary to hold out for a higher number. Montgomery also warns that prices could move quickly if non-commercial traders begin liquidating their positions.

The rally has been supported by tight corn stocks relative to use, strong demand, and broader macroeconomic factors. However, nearly 1.2 million futures contracts across grain and oilseed markets are held by non-commercial traders, creating both opportunity and risk for producers.