Corn futures & soybean futures stockpiles may be large now, but farmers in the Midwest seem to have no choice but to add to the grain glut. Corn futures & soybeans ended down .06 & .0775 settling near $3.67 & $9.0825 (respectively) today at the Chicago Board of Trade.
Even though farmers claim the crops won’t be profitable, with bills to pay they can’t afford to leave land idle. US farm income is reportedly at a 14-year low.
“Here in the Midwest, where I grew-up, the name of the game for all farmers and grain producers is to make it through the season, pay your bills, and do what needs to be done to get to the next harvest,” said Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, sharing her fundamental assessment of the grain futures market. Bourbeau added, “There is not much choice, especially for the small corn and soybean farmer, to plant more during a glut with the anticipation to at least break even.”
The trend for corn & soybean futures are both technically “up” – albeit in not-so-strong trends. Corn futures & soybeans appear to be in buy zones at this time, however not in front of a major USDA crop report tomorrow morning.
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