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Surging Crop Prices Put Some Farmers in a Jam

The soybean harvest in Brazil this week.

The soybean harvest in Brazil this week.

Photographer: Patricia Monteiro/Bloomberg

The recent surge in crop prices is surely welcomed by a lot of farmers. But counterintuitively, it’s presenting new obstacles to some of them.

First, consider the case of soybean growers in Brazil. Farmers in the world’s largest producer and exporter of the oilseed locked in more forward sales ahead of the harvest than ever before. The problem, though, is they did so months ago, at prices far lower than what the beans are fetching today.