Due to extreme drought – farmers are preparing to harvest corn and soybean crops in poorer conditions than expected – and Ag Economist Corinne Alexander says farmers have to decide whether to store their grain or sell it directly from the field – hoping for higher prices. In most cases – shesays farmers should take their grain straight to the elevator. The market is giving a strong signal to farmers to deliver early and at harvest – according to Alexander – because storage will not be profitable for corn or soybeans. USDA estimates along with declining crop conditions have increased prices for both crops – but prices are likely to come down during the first quarter of 2013 when South American farmers harvest their crops.

Alexander says there are only two reasons farmers should store grain in a short crop year – if they are livestock producers supplying their own feed or if they have contracts with food or ethanol processors specifying a later delivery date. This fall – unless farmers work fast to get grain dried down to appropriate levels – Grain Quality Specialist Richard Stroshine says their crop could spoil in the bin.