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SC Iowa |
Donald asked "are you sure about corn moving from east to west"??
yes, Donald I have very good information sources, down to what rail lines are being targeted....central Illinois is set up as a big spider web of rail that feeds into Decatur....when Decatur doesn't want the corn, which is a rarity, those shippers don't have a lot of options but to wait for the markets to equalize
Thekcirp asked "where are we (Eddyville) getting our corn??
95% is coming from within a 70 mile radius of the plant.....we are buying a bit more corn in NE Missouri than normal, otherwise it is pretty normal, and we are still seeing a nice tail to this year's harvest
Tink asked about basis levels:
Our Dayton Ohio plant is bidding -15Z this morning.....and Eddyville is bidding +20Z in a state that is going to grow a 2.2 billion corn crop this year....east central Iowa, in fact about 80-90% of Iowa would be classified as a "high priced basis island" this year, especially in light of the size of the Iowa crop...
in Iowa demand is very strong from all segments.....ethanol plants have great margins, livestock feeders are kicking out DDG's in favor of corn/soymeal, and the processors are all running at capacity
*** I would advise paying attention to how far out the export buyers are pushing their coverage.....recent purchases are being pushed into April and May time periods....they have taken advantage of the soft board to add coverage at a pretty fast clip.....I don't know what happens when they get their summer coverage in place....will they wait on new crop or just keep adding??
Ray J
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