John Heinberg, market advisor with Total Farm Marketing, says the supply pile of grain is a wet blanket on commodity prices.
Corn stored in Wisconsin on June 1 totaled 215 million bushels, up 3 percent from last June. This is according to the latest grain stocks report from USDA. Of the total stocks, 51 percent are on-farm.
Soybeans stored in all positions in Wisconsin on June 1 totaled 30.4 million bushels, up 14 percent from 2023. Of the total stocks, 41 percent are on-farm.
The trend is national. Corn stocks on June 1 totaled 4.99 billion bushels, up 22 percent from 2023. Of the total stocks, 3.03 billion bushels are on farms, up 37 percent from a year earlier. Off-farm stocks, at 1.97 billion bushels, are up 4 percent from a year ago.
Soybeans stored as of June 1 totaled 970 million bushels, up 22 percent from 2023. On-farm stocks totaled 466 million bushels, up 44 percent from a year ago. Off-farm stocks, at 504 million bushels, are up 6 percent from a year ago.
“We’ve got a fairly large supply of corn out there, but then on top of that, 3 billion of that is still in producers hands,” Heinberg explains. “That becomes an immediate rally killer if we do get any price movement to the higher side.”
Heinberg says it’s a difficult situation because if the corn market does see a summer rally, it’ll be limited by the amount of product that will start moving.