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Soybean processor sees surge in farmer selling

A grain merchandiser says he’s seen a flurry of soybean deliveries this month because of several factors.

Jeff Johnston with Zeeland Farm Services tells Brownfield, “It’s almost like harvesting our plants, we actually had to have a few days where we had some plant shutdowns where we weren’t receiving beans because the plants were so full.”

Johnston says a bump in soybean markets and hedging ahead of any tariff impacts have been major drivers.  

“I think guys are trying to get some sales on because they don’t know, we could be way up, could be way down, nobody knows how it’s going to affect the markets,” he says. “I personally think that some of this tariff talk is already factored into the markets.”

And he says, “I think the cost of money too is also driving these people to sell some stuff as well.”

“They have bills due out there and they see that by selling beans now, it’s not really worth waiting two or three months to pick up five or 10 cents, that money’s worth more to them in their pockets now.”

Johnston says the recent uptick in highly pathogenic avian influenza cases has widened the basis in the local corn market around the Great Lakes region and caused them to ship meal further.

“A lot of our meal typically stays in Michigan, Ontario, Northern Ohio, Indiana, but a lot of that meal is getting shipped to the Southeast and other places throughout the United States, and even down to the Gulf too,” he shares. “It’s easier to discount your meal a little bit, than slow the plants down sometimes.”

He recommends farmers set target sales for their current crop and next year’s to take advantage of major market swings likely in the coming months.

Brownfield interviewed Johnston as part of the recent Great Lakes Crop Summit in Mount Pleasant, Michigan.

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