Market Advisers Warn Producers of Significant Risk Amid Harvest Approach

Strong corn and soybean prices have given producers an opportunity to price grain at three-year highs, but market advisers warn that this comes with significant risk as harvest approaches. Austin Schroeder of Brugler Marketing and Ross Baldwin of John Stewart & Associates cautioned producers on the Rural Radio Network's Weekly Market Roundup to use current values to manage their bottom line.

Schroeder noted that cash sales or hedges deserve consideration for those with limited storage or bushels that must move at harvest, given daily price swings remain wide. Baldwin agreed that producers should use current prices to manage risk and make cash sales, citing corn near $5.50 as a level that could support sales.

The market is also awaiting more detail from trade discussions between President Trump and Chinese President Xi Jinping, with Schroeder saying an announcement from U.S. Trade Representative Lighthizer was expected on Monday but the content remained uncertain. Baldwin noted that tariff relief and any commitment involving U.S. corn would be the most consequential developments for grain.

The delay in harvest due to wet weather is another market factor, with Schroeder saying rain had slowed an earlier-than-normal harvest start in parts of Nebraska and the western Corn Belt. The delay has tightened soybean availability for crushers with favorable margins, encouraging stronger bids and supporting nearby basis and soybean meal.