cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Senior Advisor

Bunge says farmer holding = price rise.

Slow farmer sales to stretch until next year -Bunge CEO - RTRS

30-Oct-2014 16:46

By Tom Polansek

CHICAGO, Oct 30 (Reuters) - The slow pace of crop sales by farmers that has hurt two of the world's biggest grain traders will likely stretch into next year, the head of Bunge Ltd BG.N said on Thursday.

The forecast for sluggish sales from Chief Executive Officer Soren Schroder may mean that Bunge and agribusiness rivals, including Archer Daniels Midland Co ADM.N and Cargill Inc CARG.UL, will continue to feel economic pressure from limited supplies despite massive grain harvests in the United States.

U.S. farmers will market larger-than-normal percentages of their newly harvested corn and soybeans next year, as they delay autumn sales because of weak prices, Schroder said in an interview with Reuters.

0 Kudos
10 Replies
Highlighted
Advisor

Re: Bunge says farmer holding = price rise.

Surely true.

 

Vast amounts of on fam storage added in the last few years and everybody was playing the tax deferral game.

 

Guess they can store for a few more years, too, as one of our resident gurus says he plans to do.

 

As far as C and S goes, as harvest begins to wind down we'll see an increase in the amount of grain that can be bought out of commercial ownership with basis only.

 

 

0 Kudos
Highlighted
Veteran Contributor

Re: Bunge says farmer holding = price rise.

Looks like cat and mouse. The commercials want to buy cheap, both futures and basis and the farmers aren't having any part of it. i have never heard of such a bunch of bull as it is hurting them. As short a time as 60 days ago Bunge west was paying about +3.00 at their crush plant in CB iowa and now they are around -50. So much for a huge crop. I don't think they have had any lines except for very early on and on weekends when harvest was just beginning and the only reason for lines then was just the matter of short hours and the time of the week. They must have been subscibing to OL bucky's reasoning and at present they are caught with their pants down. My best guess based on current conditions, including Brazil, is futures could rise and basis will continue to tighten. Just my 2 cents worth.

0 Kudos
Highlighted
Honored Advisor

Re: Bunge says farmer holding = price rise.

  • Cash Bids
Soybeans
Quote Basis
By 11/7
9.8925 -0.6000
Nov 8-30
10.0425

-0.4500

 

 

Cash bids from Bunge West 

0 Kudos
Highlighted
Senior Contributor

Re: Bunge says farmer holding = price rise.

We have better basis here than we ever have at harvest. Someone at the gulf wants beans bad.
0 Kudos
Highlighted
Advisor

Re: Bunge says farmer holding = price rise.

NC '15 has followed pretty well. Might be a good time for a small incremental sale.

0 Kudos
Highlighted
Honored Advisor

Re: Bunge says farmer holding = price rise.

Ba ha ha ha ............Farmers actually making the market move.    That's a good one that is.

 

There is more to this than meets the eye folks.      Smiley Wink

0 Kudos
Highlighted
Senior Advisor

Re: Bunge says farmer holding = price rise.

Late harvest, good demand (China) and some saying low oil content. I suppose oil content is a two edged sword. I there is a commitment for oil one might have to buy incrementally more beans to suupply it. On the other hand it should mean less value for beans. On the other hand it might be harder to source the beans this early - ..... and so on.

0 Kudos
Highlighted
Senior Advisor

PS

Supposedly lower protein in soy this year also, at least reports of it.

0 Kudos
Highlighted
Senior Contributor

Re: PS

There's a good crop just not a gigantic one like they want. 

0 Kudos