Minnesota farmer hoping for a June rally
Farmers with grain in storage are looking for opportunities to move old crop inventories as planting winds down.
Southeastern Minnesota farmer Brennen Toquam tells Brownfield he’s hoping for a seasonal rally.
“We’ve done some things with basis contracts and stuff to try to lock in that basis now, hope for a summer rally, and sell into that.”
The corn and soybean grower from Blooming Prairie says he was fortunate to market a lot of his 2019 crop ahead of the COVID-19 pandemic.
“In hindsight, that was a very wise thing to do, (and) not by our own doing. Our crop marketer helped us out with that. So we feel pretty good about what we have sold, but what’s left is a different story.”
Toquam anticipates some sort of summer rally. For corn, he believes the USDA projection of 97 million acres has to come down. He says if reports of one and-a-half million acres of prevented planting in the Dakotas are accurate, that would take a bite out of production.