Soybean Market Struggling Through Harvest as Trade is Disrupted
A perfect storm seems to be over U.S. soybean farmers as the United States appears to be on its way to a record soybean crop that includes a significant level of quality concerns due to weather all while export market disruptions have slowed the movement of soybeans from U.S. ports. This has caused a chain reaction of downward pressure on exchange market prices for soybeans, more intense scrutiny on soybean quality by grain elevators, wider basis and increased dockage rates on damage at the local cash market level.
Soybean farmers are struggling through this economic environment and seeking ways to mitigate their losses this growing and marketing season. The U.S. Department of Agriculture (USDA) has established a trade mitigation assistance program that will offer some relief in the form of direct payments of $1.65 per bushel on harvested yield with payment limitations, and there may be additional assistance from USDA in the coming months. In addition, farmers are hopeful that a long-term farm bill can provide additional support, but its not likely to come until after the November elections at the earliest. Currently there is no discussion for any supplemental disaster assistance support from Congress, but that could change as well following the elections.
Arkansas soybean farmers were reported to be 32% harvested by October 5th according to USDA National Agricultural Statistics Service (NASS).