Sat - 10/10/2016 01:50

"I believe the line of thinking is that to get rid of burdensome supply it has to be used, not packed away into bins. As we store for higher prices, others in the world take our market share and we lose out - thus adding to the already burdensome supply."

Mr G sums it up pretty well. Exports have and IMO will nearly always be the way to get rid of the burdensome supply. As producers have been building bins and storing for higher prices the corn carry continues to grow and prices have went no where the past 3 years. This is a resent point and case, the mid 1980 are the historical point and case. This past spring/summer producers held for higher price, we had higher prices offered, many did not sell. As producer held for more, the carry came out of the market moving bushel into end user channels from commercial owned grain. THIS INCLUDES DP CONTRACTED GRAINS. These bushels were moved J/J/August into September even tho producers with DP contracts had not sold it yet. Many had to sell this DP bushels the end of August. The commercials sold bushels to the end users satisfying the demand, while producers had not sold/priced them.

Month end August ALOT of DP bushels were priced by producer, there are ways to see this. To make this worse some ZCN DP contracts were probably roll to U to producer had more time for the drought rally, more time to hold, more time to hold and sell right on or near the marketing year low. Was the Free DP really FREE ? ? ? See why I say farmers should just stick with free hat's/steak and beer ? ? ?

The good news with this, we exported a lot of DP corn, the bad news,,,,, is some of this corn was loaded on a ship, sent to whatever country BEFORE the producers were actually handed the check for that grain. The other bad news is your friends and neighbor sitting with their corn still in the bins come September first said what the heck just happened ? ? ? If the UN-priced corn was the bin Sept. 1st its probably still sitting there and some are probably building more bin or bags and this whole deal starts again for marketing 2016-17 crop.

Commercials don't what you to know this stuff guys and gals. There are way more bushels marketed here then the most think.
Friend don't let friends drive drunk ?
Friends don't let friends sign DP CONTRACTS.....................

Side Note : Probably wanna look at ZWZ in the morning :o)