Corn and soybeans have rallied in recent weeks, and an Iowa State University Agriculture Economist says farmers should take advantage that increase. Chad Hart says the price rally is due to a combination of factors. “The dollar has gotten weaker, made our corn, soybeans, even our livestock products a little cheaper to the rest of the world, so we’ve seen more sales that way,” Hart says. “The weather problems in South America not only delayed their harvest, but destroyed some crops down there. Again, opening up a few more export markets for us at a time when typically when the world is sourcing more out of South America.”

Hart says July 4th is typically a time when farmers can see what the markets will do for the remaining crop season. However, he believes that time frame may have been pushed up a little. He says this year’s price trends looks familiar to a rally early in last year’s planting season. “And I am wondering if we are going through that same process this year, but if you will, a little longer, a little stronger this year than we saw last year,” Hart says. The Iowa State University Agriculture Economist says farmers may want to look at selling some of their stored grain during this rally. He also says farmers may want to look at ways at protecting themselves from any price decline as it relates to their new crop that is still in the fields.

He says the new crops represent a marketing opportunity and farmers may look to put in some price floors or option contracts. Hart says the length of the rally depends on Mother Nature and how quickly the El Nino weather pattern turns into a La Nina weather pattern.

(Radio Iowa)