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Troubling soybean demand outlook in Upper Midwest

Some farmers in the Upper Midwest might have fewer options for delivering new crop soybeans this fall.

Southwest Minnesota farmer Bob Worth says basis levels in the region are anywhere from 92 cents to $1.25 under Chicago Board of Trade futures and he expects them to widen during harvest.

“We could be talking $1.60, $1.70 basis. They’re basically saying they don’t want the beans. It’s going to be a serious situation (because) a lot of farmers do need some cash in the fall.”

He tells Brownfield there are several reasons, including a lack of demand from China.

“Also, the elevators are extremely nervous. They’re looking for some kind of certainty too.”

Worth says severe weather causing wind damage and even lightning fires has crippled storage facilities.

“And also, the farmers still have a lot of grain sitting in the elevator. So the elevator can’t empty it even if they wanted to because the elevator doesn’t own the grain, it’s there under storage.”

He says what needs to happen is some sort of big trade announcement that includes massive soybean purchases, otherwise some producers won’t survive to farm another year.