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ISU ag economist advises selling beans

An ag economist says farmers should take advantage of the fall run-up in soybean prices.

Iowa State University farm management specialist Steve Johnson thinks it will be difficult for soybean prices to rally much more with such a large U.S. carryover and a record South American crop on the way. He advises farmers to sell some soybeans now.

“We’ve rallied a dollar a bushel from the 18th of September to the 12th of December. I think you want to reward this rally,” Johnson says. “Yes, the basis is wide, but we’ve already collected 82½ cents from that first MFP payment.”

Johnson says he’s hearing from a lot of farmers who have the lowest breakeven price on soybeans they’ve had in 15 years.

“A lot of farmers are saying, ‘Below eight dollars is all I’ve got in these beans, because I had above-average yields’. I’ve got farmers returning 20 to 25 percent return on investment on ’18 beans.”

Johnson is more optimistic on corn prices. He says he anticipates another late winter-early spring rally in corn.

AUDIO: Steve Johnson