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Basse: Harvest lows are in for grain markets

A market analyst says harvest lows are in and farmers should be looking to reward any rallies prices as harvest progresses.

Dan Basse with Ag Resource Company says grain prices hit their annual lows in late June, with another downturn following USDA’s Quarterly Grain Stocks report in September.

“We now believe the market is going to be very choppy, maybe have a higher bias, but that all depends on China. We need China to come back to buy more corn or soybeans, or a weather scare in South America.”

He says rising diesel costs are making farmers less willing to sell additional corn at $5 per bushel.

“We still believe corn can make it near the $5.80 to $6 range,” says Basse. “Soybeans can make it up to $13.50 or $14. The wheat market might have the most upside potential with the war ongoing, making it up to $8 or $8.50.”

Basse says farmers should be watching for strengthening in local basis.