onida, south dakota | Sat - 11/30/2012 22:54 Frosty most have been talking/expecting a super strong corn basis like we had last year,only thing is one year ago year had a futures market were trading about $1.70 lower. I think the E plants really need to push the basis lower so they can make some money... I'd say the rally we had was pretty much short covering,more so in beans and wheat and its seem really hard to get net new buying. Open interest was down in all 3 grains from today,,,again hard to rally with money leaving the market place...
i aggree that corn price in general isn't good for demand...........and if E plants started to struggle at 6.00-6.50 corn like they did last year..........they should struggle even more at 7.00-8.00 corn
i did have one very interesting coversation with an ethanol plant buyer today..........i was asking him about one of thier plants that they shut down
and he was telling me that they are keep in so it can fire up so that it could run within 24-48 hours at full capacity
i guess they fill it up every..........and then every couple weeks have a run............keeps things so they still work in the winter and allows them to start running on short notice should market conditions allow
also aggree that money flow is extremely important and right now we don't have the headlines nor risk on attitude ...........and if we are going to take a run up...........the funds will need to be flowing money into the markets...................not out |
Stupid Market
