Market Report: August 14, 2024

That’s the question on my mind as I speak with grain buyers today. With the markets tilted in your favour, what’s holding you back from making a purchase right now?

While prices are currently low, many buyers are holding out, expecting them to drop even further. It’s not surprising that the top three reasons for this reluctance are consistent across the board.

First, the looming threat of a rail strike has buyers hesitant to stock up on product they might struggle to export. The implications for storage and the potential for market fluctuations also play into fears that grain will lose value while it sits in bins.

Many buyers believe we’re heading for continued softness in the grain markets. U.S. corn prices are particularly low, putting pressure on other commodities. As they watch corn prices slide, they’re adopting a ‘wait and see’ approach, especially when it comes to making large purchases.

There’s also a widespread belief that a lot of the 2023 crop is still sitting in bins. Whether that’s accurate or not, buyers seem to be counting on an abundance of supply, which means they don’t feel the pressure to pay top dollar right now.

But I’m curious—what do you think? Are these concerns affecting your buying decisions? We’d love to hear your thoughts. Feel free to reply to this email and share your perspective.

Because Farming Is Forever,
Carmen