As I write this, harvest 2024 has come to end for almost all local producers. I’m not sure many would have predicted in August that harvest would wrap up with several days to spare in October, but above average September temperatures and virtually no rain for the past 60 days allowed the corn crop to catch up quickly. At CVEC, our harvest unloads averaged 58.1 lb test weight and 14.5% moisture with many producers hauling directly out of the field. Yield reports in our area were somewhat variable, but most producers were pleased overall. CVEC should have a good supply of high-quality corn to work with in the coming year.
On the national level, US farmers have nearly finished harvesting what is likely an all-time record yielding corn crop (183.8 bpa), and second only to last year in terms of total production. In anticipation of another large crop, corn prices traded to almost $1.50/bu below last harvest’s prices when they hit recent lows. The good news is that low prices have continued to attract demand both domestically and in the export markets. Currently the USDA is projecting near record domestic corn demand for the coming year, and exports are also expected to be strong. Given the strong demand and completion of harvest activity, corn futures prices are probably on pretty solid ground at these levels, but a meaningful breakout to the upside isn’t likely without a South American weather threat materializing this winter. Locally, although corn production was better than we may have hoped for, I think for the most part we’ve harvested an average crop for our area. This, combined with good export demand and a poor Southern Minnesota crop, will likely keep local basis levels firm heading into winter as elevators and processors fight for corn ownership.
As always, please feel free to reach out to Sara or myself with any contracting questions, or to get set up with the CVEC customer online portal or mobile app. Thank you all for a successful past year and we’ll look forward to Fiscal Year 2025.
