Producers Stockpiling Corn
Agribusinesses offer big premiums, but many farmers decline to sell
A costly tug of war has broken out over what is usually one of the Farm Belt’s most ubiquitous commodities: corn.
The Wall Street Journal reports that agribusiness companies, including Cargill Inc., Archer Daniels Midland Co. and Smithfield Foods Inc., are dangling hefty premiums to buy bushels of corn in places where unrelenting rain this spring prevented farmers from planting millions of acres.
Some farmers, though, are opting to sit on their unsold grain, banking it in case of a diminished harvest this fall — and the potential for still-higher prices ahead.
Read the full report at The Wall Street Journal.