Farmer selling picks up as planting slows down
The movement of old crop corn is picking up as farmers finish planting.
StoneX chief commodities economist Arlan Suderman says there was a flush of selling following Tuesday’s price collapse.
“It was kind of a give up out of frustration. I think if we would’ve broke prices a little bit more, we would’ve seen some more selling. We’ll probably see quicker selling now on the rally.”
He tells Brownfield that’s typical in this type of market.
“You get a big run up, and then on the way down you start to see some nervousness and nervous selling. And then when you get the next rally, farmers are quicker to sell. Once the farmer is all sold, then the rallies tend to go more unimpeded if you continue to have supportive fundamentals.”
And Suderman says fundamentals are very supportive with continued strong Chinese demand, production problems in Brazil that are far worse than anticipated, and a money-rich market environment that’s been enhanced by fiscal and monetary stimulus.