U.S. Corn Reserves Expanding Most Since 2005: Commodities
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Iowa farmer Julius Schaaf isn’t waiting for his corn to grow kernels before he sells this year. As last season’s record harvest spurs bulging inventories, he’s playing it safe, even as most growers hold onto their grain.
“We had perfect planting conditions, and everything is in place to produce a big crop,” said Schaaf, 61, who has already sold 70 percent of the grain he plans to produce on 3,800 acres of corn and soybeans near Randolph, Iowa. That compares with the 25 percent he would normally have sold by this time of year. “I feel pretty good with my hedge positions, because it is evident that prices will take a downturn. With above-average yields, it will be close to break-even.”