An ag consultant suggests farmers hold off on pricing grain for 2024.
Retired Iowa State University Extension Farm Management Specialist Dr. Steve Johnson says although current commodity prices are strong, he recommends waiting until this May or June and playing off uncertainty of grain production in the northern hemisphere.
“Even though soybean prices might be slightly higher in that late winter period because of South American weather, I am into that spring uncertainty and that us because 85% of feed grains are grown in the northern hemisphere.”
He says farmers can use a hedge and work with a broker for flexibility but says they need to understand the margin call risk.
