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Missouri rice farmer holds off on sales as basis remains wide

A rice farmer in the Missouri Bootheel is wrapping up harvest and says he doesn’t have much of his crop marketed.

Rance Daniels, who farms in Dunklin County, says while rice futures prices have improved lately, basis has widened.

“The milled rice prices need to improve, so the basis will narrow back down. And it has some, but it got really wide there for a while, just simply because the futures had outrun the mill market price,” he says.

Rice yields are average on the farm, and Daniels says it’s a good outcome given the growing season.

He tells Brownfield about 20 percent of his rice crop has been marketed, sold at a price that will help him breakeven.

“I mean, it wouldn’t hurt for the cash price to get up to $6.75 or so to really pencil and everything. We’re in the low sixes right now. I need about another $0.50 to feel comfortable with moving a whole lot of it.”

Daniels says soybean harvest will start soon, and he’s looking forward to harvesting soon with prices being a bright spot.