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“Big carries = big opportunity,” says grain market economist Ed Usset

An extension grain market economist is confident there will be marketing opportunities in the months ahead.

Ed Usset with the University of Minnesota says large carries in the market can be taken advantage of.

“I’m talking about the price differences from say December to March, May, or July Corn. We have a large positive carry in corn. We’ve got large positive carries in wheat. We’ve got large carries in soybeans.”

He tells Brownfield farmers with adequate storage can sell the carry either directly or with a risk strategy like hedge to arrive.

“Just the other day I saw elevators bidding almost 40 cents higher for delivery of corn and soybeans out in April and May with a forward contract.”

Usset says if there’s progress with exports, soybean basis levels could dramatically improve.

“If we can fix them up, 155 under becomes maybe 75 under the July or the May (contract). And you’ve got not only a big carry to capture, but the possibility of a big increase in that basis.”

He says the current carries in the market give farmers an opportunity not seen in the last few years.