Grain & Feed Manager - Managers Forum

[Chris Clukey]

US Cash Grain Review: Country Movement Continues To Stall

Cash grain movement remains lethargic as producers have no interest in selling corn or soybeans amid mixed futures prices and with uncertainty surrounding the crops, merchandisers and analysts said Wednesday.

"Historically, if you'd have seen a one dollar rally in corn during the month of August we'd be as swamped as you could possibly imagine, but there's been very limited activity at all," one central Iowa-based merchandiser said.

Producers have pre-sold much of their grain stocks, so there isn't as much available, and there hasn't been a push to free up cash at this point, so grain selling is minimal. In addition, uncertainty surrounding the size of the soybean and corn crops at this late stage of the growing season is also crimping sales, he said.

"There's more uncertainty today than there was three weeks ago, and it's a very strange time to make that kind of comment," the merchandiser said.

(The rest is here: http://news.ino.com/headlines/?newsid=20080827012336)