In this period of time, US farmers usually apply one strategy to get the most of their work. They are holding their sales despite their increased grain storage to sell their product at bigger scores. However, a new federal report highlights the fact that the country cannot provide these producers the right circumstances for a high demand. This is because there are still grains in great supplies around the country.
Grain Storage Scored Record Numbers as of June 1
On Friday, the U.S. Agriculture Department underscored some challenging conditions for farmers. Their report suggests that as of June 1, farmers possessed 2.841 billion bushels of corn in their storage bins. This is the fifth largest quantity of merchandise for this summer time. On top of that, data show that this is the largest production of corn in 29 years.
All these numbers point to a concerning situation where the market remains under pressure from a lower demand than the existing supply. However, things may change with the next harvest. The total amount of grain storage was of 5.225 billion bushels starting with June 1. This is the largest ever recorded number in 30 years.
The Next Harvest Is Expected to Bring in Another Wave of Product Excess
According to the USDA, U.S. farmers were proactive and transported around 2.067 billion bushels out of their personal storage bins. Even though the operation took place between March and June, it was still not enough to accommodate a balanced market.
This issue stemmed from last autumn’s harvest which enabled grain dealers to remain with some weak bids. The situation might preserve these conditions as the next harvest is expected to be opulent as well. No matter what price tag they are looking at, US farmers will have no other choice than to empty their storage bins to store their next harvest. This implies extremist solutions, such as even dumping their merchandise altogether.
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