Farm Management Tour: July 17, 2024

Learn about innovative farm management strategies, new technologies for improving efficiency and productivity, ways to ensure a successful transition of farm operations to the next generation. Join us at the 91st annual Purdue Farm Management Tour and reception honoring the 2024 Indiana Master Farmers in Randolph County (Winchester), Indiana on Wednesday, July 17th.

June 7, 2024

Stay Tuned for Possible Basis Swings This Summer

by James Mintert and Josh Strine

Since early May, Indiana corn basis has flattened or improved modestly, depending on the location. Corn basis levels throughout Indiana remain well below their three-year average as illustrated in Figures 1 and 2. Although basis levels remain below their multi-year average, basis has risen sharply since the low points observed last fall. For example, when measured from its fall low to early June, central Indiana corn basis increased by $0.65/bu. which was $0.16/bu. more than the average basis increase of the prior three years. Similarly, July corn basis at Indiana ethanol plants over the same period improved by about $0.68/bu. compared to an average increase of just $0.48/bu.

Figure 1. Corn Basis, July Contract for Central Indiana Source: Purdue Center for Commercial Agriculture Crop Basis Tool

Figure 1.

Figure 1. Indiana Ethanol Basis, July Contract Source: Purdue Center for Commercial Agriculture Crop Basis Tool

Figure 2.

Similar to corn, Indiana soybean basis levels remain below the multi-year average (figures 3 and 4). Also, like corn, soybean basis levels have increased sharply since the lows established during last fall’s harvest. One notable difference between this year’s corn and soybean basis changes since fall is that, unlike corn, the increase in soybean basis from last fall to early June has been about equal to or a bit less than average. For example, central Indiana soybean basis has improved by about $0.86/bu. from its fall low to early June vs. an average increase of about $0.89/bu. Soybean processor basis over the same time rose about $0.90/bu. compared to an average increase of just over $1/bu.

Figure 3. Soybean Basis, July Contract for Central Indiana Source: Purdue Center for Commercial Agriculture Crop Basis Tool

Figure 3.

Figure 4. Indiana Soybean Processor Basis, July Contract Source: Purdue Center for Commercial Agriculture Crop Basis Tool

Figure 4.

The corn and soybean basis charts provide a note of caution for producers still holding old crop inventories. Historical analysis indicates that basis predictability drops off sharply by late June and early July. The charts suggest that, on average, corn and soybean basis weakens as the growing season progresses. In reality, basis levels for the rest of the summer will be heavily influenced by Corn Belt growing conditions and crop production expectations which could lead to wide swings in basis between now and the end of the storage season. As always, be sure to visit the Purdue Center for Commercial Agriculture Crop Basis Tool to check current corn and soybean basis levels and historical basis trends in your local area.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Conventional & Organic Enterprise Net Returns, FINBIN data from 2019 to 2023

July 12, 2024

This article summarizes net returns for conventional and organic crop enterprises using FINBIN data from 2019 to 2023. Organic corn and soybean enterprises had lower crop yields, higher crop prices and gross revenue, and higher net returns. However, there was a much wider difference in enterprise net returns among organic corn and soybean enterprises than there was among conventional corn and soybean enterprises.

READ MORE

Corn & Soybean Basis Strengthen Through June & July

July 12, 2024

Depending on where you are located, Indiana corn and soybean basis have seen large swings in the last six weeks. For example, SE Indiana corn basis was -$0.13/bu. in the first week of June but was $0.03/bu. on July 10th. Unlike history suggests, the movement has generally been a strengthening in basis for both corn and soybeans.

READ MORE

Corn Was King: The Transition to Soy in U.S. Production Agriculture

July 11, 2024

Margaret Lippsmeyer presented during agri benchmark’s 2024 annual conference in mid June, which was hosted by the Spanish Ministry of Agriculture in Valladolid, Spain. An increase in soybean acreage may come from either (a) shifting away from continuous corn rotations to corn-soy and (b) shifting corn-soy rotations toward corn-soy-soy. Based on agri benchmark¬†data, Margaret showed that option (a) would require an increase in soybean prices of 6% and option (b) of 8% to make these rotations preferable over existing ones.

READ MORE

UPCOMING EVENTS

Purdue Farm Management Tour & Indiana Master Farmer Reception 2024

Two outstanding farms in east-central Indiana will host visitors wanting to learn about farm and crop management on July 17th for the Purdue University Farm Management Tour. The Indiana Master Farmer reception and panel discussion will follow.

Read More

2024 Crop Cost and Return Guide

November 22, 2023

The Purdue Crop Cost and Return Guide offers farmers a resource to project financials for the coming cropping year. These are the March 2024 crop budget estimations for 2024.

READ MORE

(Part 2) Indiana Farmland Cash Rental Rates 2023 Update

August 7, 2023

Purdue ag economists Todd Kuethe, James Mintert and Michael Langemeier discuss cash rental rates for Indiana farmland in this, the second of two AgCast episodes discussing the 2023 Purdue Farmland Values and Cash Rents Survey results.

READ MORE

(Part 1) Indiana Farmland Values 2023 Update

August 6, 2023

Purdue ag economists Todd Kuethe, James Mintert and Michael Langemeier discuss Indiana farmland values on this, the first of two AgCast episodes discussing the 2023 Purdue Farmland Values and Cash Rents Survey results. Each June, the department of agricultural economics surveys knowledgeable professionals regarding Indiana’s farmland and cash rental market.

READ MORE