Storage Rate Increases

Please remember that storage rates could rise to 8 cents/month starting in November for beans and December for corn. Wheat storage is still the least it can be with the variable storage rate yet capable of surpassing corn and beans if the situation and circumstance warrant. But, with the potential for a small crop in the eastern section of the Heartland there might no be a "race for space" this year and it appears that producers are storing the crops on farm.

The NWS is projecting warmer than normal temperatures and normal rainfall in its most recent 6 to 10day forecast and this may be perceived as conducive for corn and bean development. It comes down to weather and politics for the next few weeks and neither are easy to predict.

As we approach first notice day with the September futures and funds generally short the markets we may just float with the spreads for a few weeks. If eastern producers gain more confidence with their corn and bean crops they might rid themselves of their wheat as they are not getting rewarded to store it.