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S Illinois | My guess would be that we can't read tons into that graph. It only shows the split between on-farm and off. So it is just saying farmers have been merchandising or at least hauling in a normal percentage of the crop. Now a bear will say, the percentage is where it is at because farmers need the money and is not an indication of demand because farmers sell at the wrong times and will always hold out for more. A bull will say demand is strong and the endusers will need to bid much higher to get the rest of the bushels. A realist will likely say, basis has been historically strong so the market was rewarded with physical bushels.
What year did the government bin building/ storage program end. My guess is the percentage in the 80's was much more to do with that than true market signals. | |
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Grain in Farmer's Hands
