Americans of soybean farmers who have climbed into the midst of US and Chinese trade wars are embarking on huge cubes.
Instead of selling crops as soon as they get it out of the ground – they pay bills for almost every harvest season – instead they are thrown into silos, containers, containers, bags, no matter how they can get their hands safe and dry.
The hope is that in the next few months, trade tensions will be eased, and China will again begin to buy from oil farmers at the top of the oil market, with depressed prices slashing in the process.
Bushel soybeans brought only $ 8.87 on Friday. About eight months ago, before the trade tensions caused tariffs, there were about $ 2 more.
The risks are high. While futures trading shows higher prices next year, this can change according to trade negotiations and rising stocks.
Moreover, the crop could be harmful to them. Soy no corn. They do not keep it almost like that.
If they do not stay awesome, they can take up moisture quickly. The rot quickly follows, making them worthless – and rough.
"This (soybean rot) smells like the destruction of the road," said Wayne Humphreys, a farmer in Iowa. "Is the consistency of mashed potatoes, plush and mushy."
Nevertheless, Humphreys will patch up as much as possible in his silo because he wants to sell his market. "It gives you a certain amount of control," he said.
Storing occurs when the soybean production reaches the record. US producers are trying to get back, as total income from the farm is expected to decline for the fourth time in five years.
The Chinese appetite for soybeans, which was used in everything from fodder pig to cooking oil, was once a bright city. But with the commencement of tariffs, imports of state oil from the USA decreased, and last September it fell almost 90 percent.
There is little chance for some farmers to maintain their harvest. Millions of buses have no idea.
Terminals in Portland, a key trade in the Pacific Northwest for ship to China, rarely offer bids. Consumables are supported at terminals and elevators, even when the cold, moist weather in North Dakota leaves many hectares.
By the end of this year, soy stocks in the US are expected to more than double to about 955 million buckets, the US Department of Agriculture reported.
The Iowa Robb Ewoldt grower since 1996 has been saving the majority of its soybeans for about 15 years. His crop usually floats on the Mississippi River, about half a mile from its fields, on barges for export via the Gulf of Mexico to China and other countries. This year, he lined beans in their own silos and allowed them to sell or store corn in a commercial warehouse in order to wait for higher prices.
"It's probably more favorable to keep this year than any year in the past," he said.
The Soybean futures contract for delivery next July was about $ 9.27 from Friday, suggesting sales later could bring more money. And traders speculate that China-US Trade tensions can ease, as countries discuss this agreement, which this month will meet in Group 20 in Argentina.
The room for all the extra soy is tight. This leads to rarely accepted measures, such as peeling beans on the ground – the risk of their exposure to bad weather. Several farmers also put them in hat bags, which can stretch the length of the football field.
"I've heard that farmers and commercial companies are putting maize and soybeans into tools and caverns," said Soren Schroder, chief executive officer of Bunge Ltd., the largest soya processor in the world.
Gingerich Farms, Lovington, Illinois, has used a 300-meter plastic white bag to store corn and soy for the past seven to eight years. This year, the family operation received as many as 10 calls from neighboring manufacturers who were wondering how to use the bags, said Darrel Gingerich, vice president of the farm.
"Maize is somehow given," he said. "They called us about the bags."
Illinois, the largest producer of soybean relatives in the United States, has the largest storage shortage, which needs as many as 100 million drilling rigs, said Tim Brusnahan, an agricultural and agricultural brokerage analyst and consulting firm, Brock Associates.
Since the beginning of this month, the Department of Agriculture in Illinois has received claims for 11.6 million bus stations for emergency storage, such as sacks, almost three times more than a year before. Requirements for temporary storage, such as structures with waterproof covers, increased by 4%.
"The market tells us to save it," Gingerich said. "It's tight, very tight."