Farmers are cautious about selling soybeans off the combine. Midwest Market Solutions President Brian Hoops says farmers don’t really want to sell on the lower markets, but storing them is not a good option either. “There’s no economic incentive to store soybeans, whether you’re doing it commercially or your own farm. It’s a losing proposition to store soybeans and the markets are telling farmers they want soybeans now,” says Hoops. “This will replenish the pipelines and we’ll likely be talking about the price going lower with more farmer selling.” Basis performance will be key under the weight of farmer selling. “We have good demand for the crop at this time of the year. Whether we can keep the good pace or we start to see China demand slowing, we’ll be cautiously optimistic.”
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