|
S Illinois | Ask yourself would you buy excess corn right now as an end user to sit on? Ethanol plants are running basically at breakeven. Cattle producers are running flat out but it’s hard to push more corn into the ration when weight and rate of gain is being pushed to the extreme already. Importing counties like the funds know there is a big crop in SA looking more likely by the day and tariffs throw unknown wrenches into the equation. So we have supply that is still more plentiful than the robust demand and more supply is coming. Large acreage is all but certain if weather allows due to lower alternate crop profitability. Low stocks to use is great for pushing price when supply is threatened.. Low stocks to use due to robust demand due to lower prices previously has less push on prices because practically all users are pushing demand as hard as they can already.
Weather/production scares are what it will take to push prices significantly higher. Steady production and steady demand only necessitates a price that insures the steady production as no price rationing is truly needed. When the market feels that price rationing is needed price will respond. | |
|
Corn stocks to use...when will market start trading fundamentals?
