Holding ability will be partially but not completely offset by newly announced supplemental government AMTA payments that are to be mailed out immediately. Some sources indicate these numbers understate actual amounts of LDPs taken because of reporting lags. Also, consider the possibility that as much as half of the U.S. crop is marketed the same way, and that financial pressures force farmers to aggressively sell much of their bean inventory in late February to meet spring cash needs. With current farm policy, such prices cannot be ruled out. The examples below show recent central Iowa hedging opportunities for farm-stored crops held into late spring.
Some basis risk is present in hedge sales.
For crops stored at the elevator, farmers may want to check forward contracts for winter delivery. 5.53 Expected Mkt. After several months of dry weather, Brazil and Argentina s Corn-Soybean Belt has received light to modest rains recently. Most areas will need more rain to get the crops off to a good start. Since South America is a major supplier of soybeans and bean products to world markets, the soybean market will be potentially quite responsive to Brazilian and Argentine weather in the next several weeks.