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Grain markets find support heading into harvest

Farmers attending the Farm Progress Show in Boone, Iowa are wondering where the markets are headed come harvest. 

Jamey Kohake with Paragon Investments says soybeans have gained back a dollar and a half this month and corn is up more than a dollar as crop conditions deteriorate and uncertainty in Ukraine continues.

“There’s underpinning underneath the market that we’re not going to slide back to say $5.50 (for corn), kind of toward that bottom side of the range. Wheat market stays supportive here at $8 to $9 because of the Black Sea area, looks like there will be no ceasefires anytime soon.”

Speaking to Brownfield at the Farm Progress Show Tuesday, he says dryness isn’t just a problem in the Western U.S.

“We’ve got drought in Europe, we’ve got drought in China (although) China did have some moisture, but I don’t think we’re going to see a complete risk-off type trade in the ag (markets) until we probably see the crop get planted next spring.”

Kohake says he is concerned a strong counter-seasonal basis will collapse once September futures go off the Board.