By Scott Stabbe, Key Cooperative Grain Department Manager
The markets have finally tried to break out of the trading range we’ve been in for the past couple months. Some talk of South American weather problems or wheat issues have helped pull corn higher. The weaker dollar has also helped with exports but the export program out of the U.S. needs all the help it can get to stay competitive with the rest of the world’s grain exports. There’s been talk of the Funds coming in to buy commodities, although, it looks like it could be some rebalancing of positions with crude oil moving higher.
The hot issue right now in the grain trade is the new tax bill’s inclusion and change in Section 199 to the new Section 199A. The new Section 199A looks to be on its way to a change as we’ve seen both coop associations, grain trade associations, privates, and senator’s offices working on a change. The concern is how this might look as work is begun on the new Farm Bill as well as the effect on the changes that may be made in the Bill due to the perception of the benefits from the new Section 199A.
This has made it difficult for producers who need to make marketing decisions. How do you do that when you are unsure of the rules you are going to have to work with? At the time of this article, it sounds like we will go back to the old Section 199 and it will retro back to January 1; if they can get it into another bill and get a 60 vote in the Senate. We will continue to stay involved with our associations and Congress since this is an impactful issue for the Key Cooperative member-owners and the uncertainty is not good for anyone trying to make business decisions.
With the temperature swings we’ve been having, we cannot stress enough to keep an eye on those bins and the condition of the grain. Always follow all the safety practices when checking bins.
Thank you for your patronage.
“Kites rise highest against the wind, not with it.” _ Winston S. Churchill