Elevators Still Carrying a Lot of Old Crop Corn

BY DAN GRANT

Elevator operators anticipate a slow start to harvest this month due to a variety of factors.

But there’s still plenty of corn on hand in many areas as a number of farmers cling to the remainder of last year’s harvest in hopes of better prices.

“We’re carrying a lot bigger percentage (of old-crop corn into harvest) than normal. Probably double than in the past,” said Kim Holsapple, grain merchandiser at South Central FS in Effingham, which operates 35 facilities.

Low corn prices provided little incentive for farmers to move corn in recent months. There’s also an expectation of low yields in parts of southern Illinois, so some elevator operators in that area are holding supplies to ensure they can meet future demand.

“We want to make sure our bins are full at the end of harvest,” Holsapple said. “South of Interstate 70, it’s almost a disaster (at some locations). It’s not quite as bad as 2012, but (the corn crop) basically burned up down there.”

Overall, Illinois corn stocks on June 1 were the highest in 20 years, according to Mark Heil, general manager of Prairie Central Cooperative in Chenoa and president of the Grain and Feed Association of Illinois.

“Old-crop supply for all commodities is plentiful across the state and the world,” Heil said.

Steve Dennis, grain department manager of Evergreen FS at Yuton, also reported large old-crop corn supplies across Evergreen locations in central Illinois.

But he doesn’t expect old-crop supplies to create many issues within the grain handling system as farmers begin to harvest the largest soybean crop and third-largest corn crop on record, based on USDA estimates.

“There’s probably more (old-crop corn) than normal. That said, we bought a lot of grain the last three to four days (of August) as we come to the end of the (marketing) year,” Dennis said. “I don’t think (the remaining old crop) will be a big burden to the system.”

Dennis expects harvest to begin around the middle of this month, about five to six days later than normal, due to a slow-maturing crop in his area caused by unseasonably cool temperatures.

“I’m hopeful for a good crop,” he said. “But you just never know until we get the combines rolling.”

Farmers in southern Illinois harvested a small amount of early-season beans last week, with early yield reports in the 60-bushel-per-acre range, Holsapple noted.

Some corn chopped for silage tested between 70 to 120 bushels per acre in the south.

Holsapple doesn’t look for harvest activity to crank up until about the middle of this month due to slow maturity and economics.

Some farmers may try to save on crop-drying bills by letting corn sit in the field longer. Meanwhile, pricing in some areas doesn’t offer a premium for delivery until October.

“Corn looks good but a little wet (north of I-70),” Holsapple added. “I’m sure some will be picked (this) week. But there’s really no incentive right now.”