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Depressed Prices Ups Farmer Hedging, CME Says

Updated: 08/14/2014 @ 10:12am

As farm markets tumble, does this cause farmers to use the futures market more or less?


Since the USDA's June 30 Crop Production Report, corn prices have fallen 25% and soybean prices 11%. And although this week's monthly WASDE Report's U.S. corn yield estimate came in below trade expectations, the 2014 corn and soybean crop sizes are still marching toward record levels. As a result, the futures markets remain under heavy pressure, pushing already to four-year lows.


Dave Lehman, CME Group Managing Director of Research and Product Development, says price volatility remains the theme on the board.

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Lehman says it's likely more farmers will see hedging as a way to navigate through the "bearish waters" this year. 


The CME Group leaders attended the Iowa State Fair Tuesday to promote Commodity Carnival, a joint effort with the 4-H Foundation to help educate children on how to grow and sell a steer.

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