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Farmers continue to hold onto grain

USDA says there’s plenty of old crop corn, soybeans and wheat in grain bins that haven’t been marketed and a market analyst says it’s expected to stay that way until commodity prices improve.

Naomi Blohm with Total Farm Marketing says farmers have been holding out for a market bounce higher.

“At any point, anywhere from a 20 to 30 cent bounce on corn was the hope and now, for soybeans if we could get a 30 to 40 cent bounce there, it’s the wait and hope people are waiting for.”

She says the grain markets are expecting U.S. crops to have trendline yields and carryout has the potential to grow. Blohm says unless that perception changes, it will be difficult for the grain market to rally.

Some farmers in the areas with excessive rains, storm damage and flooding tell Brownfield it’s frustrating the grain markets aren’t factoring in the less than stellar crops. Kevin Deinert from South Dakota says…

“It’s tough to market at these levels when we think it should be higher.”

Ryan Meyerkorth from Missouri says farmers are hopeful the market situation will change.

“In a global market, something can happen anytime. It’s a hold and see right now.”

Blohm says farmers could be waiting until November for confirmation the U.S. crop isn’t at trendline yield and this week’s USDA reports aren’t expected to provide fresh data to change the outlook.

USDA’s next round of supply and demand estimates is out Friday at noon Eastern/11 Central.

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