FARGO – As harvest begins, there’s bad news rolling in, according to a new report from the United States Department of Agriculture and North Dakota State University.
In a report by NDSU, the Upper Midwest ‘has never been this weak so early in the marketing year.’
According to the report, basis has widened to -150 cents per bushel under Chicago early this month. Cash prices have hit $8.50 per bushel, the report also states. These numbers are even more extreme than what was seen in 2018, when the United States was in its first trade dispute with China.
South Dakota and Minnesota, who are dependent upon the Pacific Northwest corridor for its exports, are experiencing similar trends. In these areas, the basis is -100 cents per bushel under Chicago.
“What is more alarming, is that they estimate that basis weakness will continue even if Chinese purchases return as supply chain shifts in the opposite direction, finding cheaper transportation in the Gulf,” the report said. “Railroads are forced to optimize capacity on new market parameters that no longer include China as a trade partner.”
In recent comments, Agriculture Secretary Brooke Rollins said a ‘golden age for American farmers is on the horizon.’
