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History shows grain prices have probably peaked for now
A farm management analyst says history shows crop prices during drought years usually peak mid-summer.
Kent Thiesse with MinnStar Bank in southern Minnesota tells Brownfield that means the current price trajectory will probably trend lower through harvest.
“When we know the actually yields. So I would just encourage folks out there doing marketing, if they haven’t been locking any price in, obviously they have to know where they’re at with bushels and crop insurance, but you might want to be taking some protection.”
But he says a late season rally resembling a year ago is not out of the question.
“If the export markets stay strong and the usage stays strong, and if we would tail off those production numbers as we get into harvest and right after harvest, there’d certainly be potential for that.”
Thiesse says it’s also possible the production numbers come in higher than anticipated, putting pressure on corn and soybean prices going into 2022.
