What Happened

Recently, a notable price recovery for key agricultural commodities, including corn, soybeans, and wheat, has emerged. This uptick has allowed farmers to make proactive sales on their 2025 crops and even initiate sales for 2026 crops.

Reflecting back on 2025, there weren’t many incentives to sell before harvest. Prices lingered close to production costs, dropping significantly throughout the year. The January World Agricultural Supply and Demand Estimates (WASDE) report highlighted that grain and oilseed supplies remain plentiful both domestically and globally. Corn prices have recently hit a multi-month high, while soybeans saw a rally in November but lost over $1 by December. Fortunately, they’ve rebounded by nearly $1.30, presenting a potential second chance to boost sales. Meanwhile, wheat is trading at its highest since July 2025.

Why This Is Important

Given the cash flow challenges and narrow margins that many farmers face, this price recovery provides much-needed relief. It not only aids in improving cash flow but also offers a psychological boost as farmers gear up for the upcoming season. This moment could be a strategic opportunity to begin selling, with the hope of even higher prices ahead to achieve a favorable average selling price.

However, the market is unpredictable, and prices may decline swiftly. Therefore, initiating sales could be prudent. Assuming that crop production remains normal, there is a valid argument for predicting lower prices by fall. The key takeaway here is simple: starting sales for 2026 now is a sound strategy, regardless of future price movements.

What Can You Do?

It’s essential to monitor price activity, understand market conditions, and stay alert to changes. Analyze price charts and recognize technical signals. Know the support and resistance levels in the market. Engage with your management team and set orders above current market prices, so when those prices are reached, your transactions are executed smoothly. Just as crucial is establishing your risk tolerance as it relates to your strategies. Remember, having no plan is still a plan.

Many farmers express frustration over missed opportunities. Being patient is one thing, but patience should accompany well-planned, executable strategies. With higher prices in play, take the time to plan and implement your strategies effectively, especially with the busy spring season approaching.

Find What Works for You

Collaborate with a professional to identify the most suitable strategies for your farming operation. Strong communication is vital. Ask important questions and ensure you fully understand the potential risks and rewards before acting. The goal is to make informed decisions for your operation, rather than emotional reactions to fluctuating market dynamics.

Editor’s Note: For questions on this perspective, contact Bryan Doherty at Total Farm Marketing: (800) 334-9779.

Disclaimer: The information provided here is based on reliable sources, but accuracy cannot be guaranteed. Individuals acting on this information do so at their own risk. Commodity trading carries significant loss risks and may not suit everyone. It is crucial to evaluate whether such trading aligns with your financial situation. Seasonal price movements or extreme market conditions are not implied to be common or likely. Futures prices incorporate seasonal supply and demand factors. No claims are made regarding guaranteed success or profits through planning or strategies. All trading decisions are your own and do not constitute endorsement by Total Farm Marketing.

About the Author: With three decades at Total Farm Marketing, Bryan Doherty is dedicated to client success across the Grain Belt. As a senior market advisor and vice president of brokerage solutions, he understands farm marketing intricacies and communicates with clarity, ensuring clients are confident in their decisions.