Planting to Processing Sponsored Content Soybean Marketing Advice Amid Low Prices Marketing your soybeans can be very tricky with the current low prices and trade instability, but there are some things you can do to maximize your profits. In this week's edition of our plant- ing to processing series, brought to you by the North Dakota Soybean NDSU Council, Crops Economist Marketing Special ist Frayne Olson shares some of his Frayne Olson expertise about mar- keting with Agweek TV host Michelle Rook A year ago, American farmers were facing uncertainty over the trade war that was started with china by President Trump in July of 2018. The two sides imposed steep new tariffs on tens of billions of dollars of each farmers and elevators are finding ways to very strong right now. So the futures market USDA Farm Service Agency data shows is telling people yeah, we're going to give you areas designated as prevented planting for "Before, we had a lot of uncertainty about incentive to store. But then there's also the soybeans soared to a record high of 4.5 what the trade flows were going to be, the potential of basis improvement. Now, given million acres. That compares to just 276,000 trade war was a surprise to us. The grain today's basis levels, I don't see them chang- acres last year. Because of the late start to elevators in particular in the area were really ing much, unless we were to get some trade planting, and continuing weather challeng- es for many farmers in the corn belt, USDA other's exports. China targeted ag products, adapt to the ongoing trade war with soybeans bearing the brunt. About sev enty percent of North Dakota's soybeans go to China through the Pacific Northwest. Nation wide 60-percent of all soybeans are exported with China, previous to the trade war, buying concerned about the movement of grain, if we agreement later on this winter. one-third of that total. So there was a great can't move it to the west coast where does it deal of uncertainty about markets. Some elevators weren't even taking beans last fall, and there was concern over very wide Ongoing trade war. So it's part of our market the election, so Olson says producers should That combined with lower acreage pulled basis levels. As the trade war drags on into a ng system right now, the cash market, the think about this in two separate channels, production down to 3.63 billion bushels. The second crop season, how is this year going to be different than last year? Olson says many President Trump recently acknowledged lowered soybean yield 8 bushels per acre go? This fall, it's very different. We have the the trade war could go on into 2020, past in the September supply and demand report. local elevators have figured out alternative futures versus cash or local basis levels. Because the futures market is really reflecting kind of the national, international end result was a big drop in new crop ending stocks to 640 million bushels, and well below the 1 billion bushel carryover for the 2018-19 season. However, harvest conditions for the rest of the season could have a significant impact on paths to be able to move our grain. So basis levels are still not impressive, but they're much better than they were last year supply and demand conditions, and the basis levels, your local cash price, is really deter- mining what's happening locally. So you may have a local surplus, you may have a lot of grain locally, but there might be a shortage on the national level. And of course, those two economic forces then are trying to signal you as a farmer. Do you store? Do you deliver today? What are the incentives to store? What are the incentives to deliver? Olson has some strategies for soybean producers this fall as we get into the harvest. 1 get a lot of questions about, you know, should we store our beans again, and I guess given what we see today, that's probably right now the best strategy. So understand you have the cost of storage, but there's two dif- ferent sources of revenue from storage. One would be the carry in the market, which is Before, we had a lot of uncertainty about what the trade flows were going to be, the trade war was a surprise to us." -Frayne Olson production figures and soybean prices. North Dakota Soybean Council Our World Is Growing Planting to Processing is a season-long series broken out by seven parts brought to you by the North Dakota Soybean Council. In it, farmers will gain valuable insights with tips and advice from industry experts. 4852 Rocking Horse Circle S., Fargo, ND 58104 701-566-9300 Planting to Processing Sponsored Content Soybean Marketing Advice Amid Low Prices Marketing your soybeans can be very tricky with the current low prices and trade instability, but there are some things you can do to maximize your profits. In this week's edition of our plant- ing to processing series, brought to you by the North Dakota Soybean NDSU Council, Crops Economist Marketing Special ist Frayne Olson shares some of his Frayne Olson expertise about mar- keting with Agweek TV host Michelle Rook A year ago, American farmers were facing uncertainty over the trade war that was started with china by President Trump in July of 2018. The two sides imposed steep new tariffs on tens of billions of dollars of each farmers and elevators are finding ways to very strong right now. So the futures market USDA Farm Service Agency data shows is telling people yeah, we're going to give you areas designated as prevented planting for "Before, we had a lot of uncertainty about incentive to store. But then there's also the soybeans soared to a record high of 4.5 what the trade flows were going to be, the potential of basis improvement. Now, given million acres. That compares to just 276,000 trade war was a surprise to us. The grain today's basis levels, I don't see them chang- acres last year. Because of the late start to elevators in particular in the area were really ing much, unless we were to get some trade planting, and continuing weather challeng- es for many farmers in the corn belt, USDA other's exports. China targeted ag products, adapt to the ongoing trade war with soybeans bearing the brunt. About sev enty percent of North Dakota's soybeans go to China through the Pacific Northwest. Nation wide 60-percent of all soybeans are exported with China, previous to the trade war, buying concerned about the movement of grain, if we agreement later on this winter. one-third of that total. So there was a great can't move it to the west coast where does it deal of uncertainty about markets. Some elevators weren't even taking beans last fall, and there was concern over very wide Ongoing trade war. So it's part of our market the election, so Olson says producers should That combined with lower acreage pulled basis levels. As the trade war drags on into a ng system right now, the cash market, the think about this in two separate channels, production down to 3.63 billion bushels. The second crop season, how is this year going to be different than last year? Olson says many President Trump recently acknowledged lowered soybean yield 8 bushels per acre go? This fall, it's very different. We have the the trade war could go on into 2020, past in the September supply and demand report. local elevators have figured out alternative futures versus cash or local basis levels. Because the futures market is really reflecting kind of the national, international end result was a big drop in new crop ending stocks to 640 million bushels, and well below the 1 billion bushel carryover for the 2018-19 season. However, harvest conditions for the rest of the season could have a significant impact on paths to be able to move our grain. So basis levels are still not impressive, but they're much better than they were last year supply and demand conditions, and the basis levels, your local cash price, is really deter- mining what's happening locally. So you may have a local surplus, you may have a lot of grain locally, but there might be a shortage on the national level. And of course, those two economic forces then are trying to signal you as a farmer. Do you store? Do you deliver today? What are the incentives to store? What are the incentives to deliver? Olson has some strategies for soybean producers this fall as we get into the harvest. 1 get a lot of questions about, you know, should we store our beans again, and I guess given what we see today, that's probably right now the best strategy. So understand you have the cost of storage, but there's two dif- ferent sources of revenue from storage. One would be the carry in the market, which is Before, we had a lot of uncertainty about what the trade flows were going to be, the trade war was a surprise to us." -Frayne Olson production figures and soybean prices. North Dakota Soybean Council Our World Is Growing Planting to Processing is a season-long series broken out by seven parts brought to you by the North Dakota Soybean Council. In it, farmers will gain valuable insights with tips and advice from industry experts. 4852 Rocking Horse Circle S., Fargo, ND 58104 701-566-9300