DOMESTIC/GLOBAL FACTORS LEAD TO RECORD PRICES

By Mike Raasch and Chip Mortenson, Grain Merchandisers

Posted: 8/18/2022

The recent USDA Prospective Planting Report (released March 31) tells us we can expect less planted acres in 2022, and the Ukrainian War assures us of a reduction in global stocks of corn and wheat. The USDA report predicted a 4% reduction in corn acres and drove 2022 and 2023 new crop prices to record highs, with December 2022 corn in the $7.50/bushel range.

With the war in Ukraine, it is anyone’s guess how many acres will get planted in an area of the world that supplies 30-40% of the world’s wheat. By the way, Russia is one of Ukraine’s biggest wheat purchasers.

On top of all this, U.S. planting is being delayed because of weather, Chinese demand remains strong, and one-third of Brazil’s second corn crop is under stress from lack of moisture. Looking forward: How should you market your grain, given all that is going on in the world?

Hopefully, you have one-third to one-half of your 2022 crop sold. We encourage you to look at getting some of your 2023 crop sold at the record prices now being offered. EDITOR’S NOTE: Dustin (Chip) Mortenson, our Hixton-based grain merchandiser, grew up in Taylor, WI. He has worked for area farmers since he was 14 years old. While attending Blaire-Taylor High School, Chip started drying grain for Federation Cooperative starting in 2015.

Chip took over grain operations at Hixton in 2017. Since Federation merged with ProVision Partners Cooperative, Chip has been buying grain (together with Mike Raasch) throughout our marketplace and was recently named the cooperative’s grain operations manager. Contact either Chip or Mike by calling 715-687-4683.