East Central South Dakota | It looks like to me supply has simply run over demand with weak basis in a big area.
Futures in an oversupply situation is highly------ impacted, influenced, swayed, or altered by money supply. Managed money seems comfortable with selling.
Panic buying can accelerate rallies. Why would you panic buy with this supply. The world knows the American farmer is very proficient at what he does.
Exports continue to be excellent with even sorghum, oats and wheat finding homes. https://www.ams.usda.gov/mnreports/wa_gr101.txt
Ethanol refineries are printing presses of money right now. Expansion is happening at plants in good corn supply areas. I would bet a lot of e-10 is in reality e-12 or higher because the price difference between ethanol and gas has the blenders walking pretty slow to shut off the ethanol line.
I am seeing some fence being built and grass seeders. Also seeing sod still being broke. This story is still playing out. On a side note, went to Deadwood for the weekend and the Diamond Ring ranch is sowed to grass----so there is that. Also seeing new tractor loaders and dually pickups in ranch country. We have to be very happy for the cow/calf folks. They deserve every penny and I hope these prices stick around a while for these folks.
As many nations are trying to scale back livestock production out of environmental concerns----it brings real opportunities for livestock expansion for us. We need to expand our livestock in an environmentally common-sense way to take advantage.
Deducted reasoning from all of the above----grain markets suck right now. If I got to go back to living on love, I better go to the pharmacy tomorrow.
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Is the fat lady singing?
