Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 9/5/17

The current price structure of corn and soybean futures markets indicate positive carry in both markets and raises the question of whether producers should make decisions about grain sales. The decision by producers to store corn or soybeans should be determined by the returns to storage.

The current projection for 2017-18 marketing year corn supply is 16.573 billion bushels, 367 million bushels smaller than last year's supply. The soybean supply is projected at 4.777 billion bushels, 249 million bushels larger than last year's supply. Total supplies (production, beginning stocks, and imports) of wheat, feed grains, and soybeans are currently estimated or forecast by the USDA to be 21.780 billion bushels, 16 percent smaller than supplies of a year ago. The USDA estimates on-farm and off-farm grain storage capacity as of December 1 each year. Total storage capacity on December 1, 2016 was estimated at 24.317 billion bushels. While storage capacity is not consistent over different areas or by type of crop, storage capacity appears capable of handling 2017 crops.

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