Corn and wheat prices were down. Cotton and soybeans were up for the week of Aug. 5.
Producers who have priced their crops early in the year — and throughout the growing season — are well positioned at this time to have a very successful marketing year.
Those that have not priced any production or have limited bushels priced have a reduced number of options available as the current price for corn is very unlikely to improve prior to harvest and most likely will retreat further as harvest progresses.
Producers facing these circumstances should consider pricing some of their production at this time, particularly if they do not have sufficient storage for the anticipated crop.
Storage may be a beneficial marketing strategy to some producers. However, there are no guarantees that prices will improve at a sufficient rate to cover the cost of storage.
Soybeans continue to be 1-3 weeks later than in a typical year, with some areas substantially farther behind.
Cotton prices approached the 90 cent level the week of Aug. 5 before retreating slightly on Friday. The 90 cent threshold has been a consistent resistance level for December cotton.
It will be interesting to see if this resistance can be breached in the coming weeks, or if it will drop back down to the 82 to 88 cent range.
Wheat prices decreased more than 25 cents on the September and December futures contracts and are at 4–week lows.
Smith is assistant professor and crop marketing specialist with the University of Tennessee Institute of Agriculture.
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