Corn bushels from North Dakota in 2016 may affect prices of corn

Corn plantings

Farmers from North Dakota have sold a considerable amount of corn, but the amount of remaining crop after the record production of 2016 could affect the prices of corn.

"We've already moved a significant amount out of North Dakota for the crop year," said John Miller BNSF Railway's group vice president of agricultural commodities. "We've been moving it steadily since last fall."

According to a report from the Bismarck Tribune, estimates from the U.S Department of Agriculture reveal that in March 215 million bushels of corn were being stored on farms in the state.

Frayne Olson, a crop economist from North Dakota State University said if farmers are holding on to corn with the hopes of the prices going up, it could lead to the price of corn lowering. Local cash price is determined by the local basis, which is a premium subtracted from or added to the futures price.

Corn Council executive director, Dale Ihry, said reports show that farmers used the first price increase to get rid of crop that they had kept because of the high yields of last year.

"By all accounts, there's still a lot of corn out there," he said.

The USDA is expected to issue another report on Friday on grain stock Ihry said.

Local elevators say a rush may occur as farmers try to make space for 2017 crops.

Meanwhile, BNSF railway said it has a lot of resources available to handle the demand.

"We are near record number of shuttles running across the system," said John Miller, as Minnesota, North Dakota, parts of South Dakota and Nebraska had record corn yields.

Shuttles have 1190 cars that can load around 440,000 bushels.

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