A spike in bargain-basement crop sales by U.S. farmers needing to make room in storage bins for autumn harvests could boost profitability at grain handlers...
CHICAGO - A spike in bargain-basement crop sales by U.S. farmers needing to make room in storage bins for autumn harvests could boost profitability at grain handlers such as Archer-Daniels-Midland and Bunge Global .
Increased sales should result in cheaper soybean ownership for ADM and Bunge, which process the crop into soybean oil and meal used for livestock feed, said Heather Jones, founder of Heather Jones Research. Selling accelerated in the Midwest in late July as forecasts for hot, dry weather lifted futures to two-week highs, grain dealers said. The gains were short lived, as markets again collapsed to 2020 lows last week.
Another Indiana farmer, who requested anonymity because he does not want neighbors to know about his sales, said he recently finished selling last year's corn to an ADM elevator for $3.54 per bushel, below his cost of production. He needed cash to make a payment that was coming due on an equipment loan.
Chris Gibbs, who farms about 375 acres in Ohio, said he was not going to buy and pay for fungicide to be applied across all his fields to prevent plant disease as he normally does. "Even in a down market, you still have to protect the crop," said Kristen Owen, executive director of equity research at Oppenheimer & Co.
Heather Jones Crop Chemicals Ron Heck Bunge Farmers Grain Handlers Greg Heckman
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