Grain market economist suspects harvest lows will bottom out soon

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Grain market economist suspects harvest lows will bottom out soon

A grain marketing economist expects a five-year trend of an early harvest low to continue this fall.

Ed Usset with the University of Minnesota tells Brownfield from 2015 to 2019, a summer rally has fizzled out between mid-August and the middle of September.

“The lows did not come in October or November at harvest. And I’m wondering why not this year too? This is not an uncommon thing in a large crop year, if you will.”

But he’s not suggesting a significant bounce once prices bottom out.

“It just means that we didn’t go any lower, and that the recoveries were modest.”

Usset says the toll from last week’s derecho storm is supportive to the market, but its impact won’t really be known until the affected crops are harvested.

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