Futures Market News
Commodities' strong performance enables purchases
Dec 21, 2010 03:18 PM
Higher crop prices for soybeans and corn, and the strength of cotton crops, have helped Missouri farmers purchase upgrades to the tools of their trade, according to published reports.
Prices for corn and soybeans presently are 60 percent higher than they were just six months ago. Those two staples have helped farmers feel more comfortable about acquiring the more sophisticated – and more pricey – supplies needed to harvest their crops, according to the University of Missouri Extension. Tractors, combines and cotton pickers are the machines one Southeast Missouri salesman said he's asked about most.
"We've seen some increase," Gary Kight, a salesman at Sikeston Implement, told the Southeast Missourian. "I really don't think it's solely because of the higher market prices, but it's probably going to help a little bit. People buy and trade because they need to, and everything happened to fall into place this year."
Chad Crow, the branch manager of Progressive Farm Credit, said "cotton is king." Mike Pobst, the president of Allied Bank in Sikeston, said this year has seen more inquiries about purchases from farmers. A Missouri auctioneer attributed the recent increase in purchases to an optimistic financial picture.
"The farm economy is good," Gary DeWitt, vice president of DeWitt Auction Company, told the publication.
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