Death comes to us all. Life's but a walking shadow | If FC Stone's report of a standstill in farmer selling is correct how do we account for the 36,000 increase in Commercial short hedging? What part of the Commercial side besides the merchants would have the need to hedge 180,000,000 bushel of corn? Especially precisely at the time of year when farmers tradionally sell a good portion of their crop. I agree that more typically farmer selling increases sooner in January but a delay this year could almost be expected. I think Ray Jenkin's report of spot selling just confirms this. Farmers close enough to Ray sell to him while other farmers sell to the more convienently located merchant elevators. A report out of Ind or Ill of low farmer selling is pretty consistent with the low production reports there this year. Producers in those areas fully understand that given supplies sooner or later the surplus in the West will decline and local basis will increase, Unlike ethanol plants or export terminals cattle & hogs don't stop eating and can complain loudly when you don't feed them.
Of course, this is just my speculation from thousand miles away so what do I really know. |
So if I interpret .....
