Producers stockpiling grains amid global glut

Chicago

IOWA farmer Karl Fox is drowning in corn. Reluctant to sell his harvest at today's rock-bottom prices, he has stuffed storage bins at his property full and left more corn piled on the ground, covered with a tarp.

He would rather risk potential crop damage from the elements than pay the exorbitant cost of storage elsewhere. "That's how poor people do it," said Mr Fox, who has been farming for 28 years. "You do what you have to do."

Farmers face similar problems across the globe. World stockpiles of corn and wheat are at record highs. From Iowa to China, years of bumper crops and low prices have overwhelmed storage capacity for basic foodstuffs.

Global stocks of corn, wheat, rice and soyabeans combined will hit a record 671.1 million tonnes going into the next harvest - the third straight year of historically high surplus, according to the US Department of Agriculture (USDA). That's enough …