The price rally, basis and structure of the new crop soybean market are all market signals.   Storage of unpriced soybeans past the 2020 harvest could be a risky venture.

Unprecedented is an overused word these days, yet it is very appropriate for the rally of new crop soybeans of $1.50 since early August.   This is the time of year when prices usually move lower in preparation for harvest.   The result of this rally is the best opportunity to market new crop soybeans that has been offered in the 2020 calendar year.  

Check your own basis levels for your selling locations.   Central Iowa new crop soybean basis delivered to Des Moines processor market was recently 15 cents better than historical average.

Storage of unpriced new crop soybeans at these prices implies a hope for even higher prices to pay for costs of ownership, shrink and other costs involved in the decision to put the beans in storage.   In addition, the new crop bean structure into 2021 is not indicating encouragement to store soybeans.  On 9/17/20, soybean futures settled at: November at $10.28 1/2, January at $10.31 1/4, March at $10.23 3/4, May at $10.19 July at $10.19 3/4.   That flat market does not encourage storage.

Those storing unpriced soybeans past this harvest are betting on higher prices after a $1.50 rally.  Sale of the crop off the combine does cut off future price risk and stops storage costs.  As you make marketing decisions this fall, make sure it makes sense for your own farm's situation and risk tolerance.