Now that planting has concluded across the United States, we are again seeing more interest in country movement of old crop bushels.
Sales of farm-stored bushels have been slow all marketing year, which isn't surprising given the volume that was sold right at harvest last fall. This is especially the case for soybeans, where thoughts are only 5% to 10% of old crop bushels remain in farm storage.
The farm-stored corn inventory isn't estimated to be much higher, with most believing it is less than 20% of last year’s production.
We are now at a stage of the marketing year where movement tends to increase. Planting has concluded, and sales are needed to generate cash flow to cover any unpaid spring bills. This is especially the case in years when developing crops look favorable for higher yields.
The better a developing crop looks, the more likely a farmer is to liquidate their old crop inventory. This is especially the case in years such as this, when futures are inverted, giving little incentive to hold bushels going forward.
This lack ...