ADM seeks to lure soy sales from US farmers as prices languish, sources say

Core Insights - Archer-Daniels-Midland (ADM) is incentivizing U.S. farmers to deliver soybeans to its processing facility due to low prices affecting sales [1][2] - ADM's offer allows farmers to defer the sale price until later without incurring storage fees, indicating a need for soybeans to maintain processing operations [2][4] - The agricultural sector is facing pressure from bumper harvests, high input costs, and reduced demand from China due to trade tariffs [3][6] Group 1: ADM's Offer and Market Conditions - ADM is providing a "free deferred pricing" option for farmers until the end of October, allowing them until September 2026 to set a sale price [4] - Farmers are currently storing soybeans in anticipation of better prices, leading to reduced supplies for processors like ADM [4][7] - The current market conditions have resulted in farmers selling significantly less of their expected crops, with only about 20% sold compared to the usual 50% by harvest time [6] Group 2: Industry Implications - The low prices have led many farmers to withhold grain from the market, impacting the supply available for processing [5][7] - Despite the low prices, U.S. soybean crushings reached the fourth highest level for any month in September, indicating ongoing demand for processed products [7]