Holiday season affects US cash grain industry

US cash grain inventories decline as producers continue to delay sales until after the beginning of the year.

Commercial inventories of cash grain at terminals, elevators, warehouses and ports across the country fell one percentage point in the week ended Tuesday (Dec 23), shrinking the total stockpile to 68% of capacity, US Agriculture Department data showed.

Stockpiles of soy fell 7.8 million bushels, and corn fell 3.2 million bushels. Wheat stockpiles bucked the trend, however, and increased 744,000 bushels.

Cash markets continue to operate in holiday mode, with little business being transacted before the Christmas break.

"We're not buying a lot of grain, some farmers are still trying to harvest corn and others don't care and are off doing their holiday shopping," according to an Illinois-based merchant.