News

Might be a good time to sell old crop soybeans before harvest

An ag economist says farmers may want to take advantage of some of the volatility in the soybean market.

Dan O’Brien is with Kansas State University. “If they still have old crop by now, they’re probably dealing with questions about storage. What do I do for the 23 crop? They’re probably inclined to look for whatever short-term rallies they have and to move that grain just to make room for what’s coming.”

He tells Brownfield the market may respond once harvest begins as producers begin to understand the impact of recent heat waves. “If it does, then and we get a run up, I think I’d take the old economist fallback position. If it’s covering your costs and given how much is uncertain in this in these markets right now, I think I’d take a profit If I’ve got the opportunity.”

O’Brien says he’s optimistic that soybean prices will move higher this fall but not sure how long that will last.

He spoke with Brownfield at the 2023 K-State Profit and Risk Conference in Manhattan, Kansas.