Basis levels are signaling to farmers to store grain. The problem is there’s only so much storage capacity on the farm and farmers need to generate sales for cash flow. NDSU Extension Crops Marketing Economist Frayne Olson says this year, there will be no incentive to deliver soybeans at harvest and there will be elevators not accepting the soybeans. “There’s going to be strong incentive to store soybeans on the farm and farmers recognize that are gearing up to prepare for that. The part that I think they are missing is that this is not a short-term event. This is something that likely take many months to fix, even if the tariffs were removed.” Learn more about storage options.
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