East Central South Dakota | "The reduction in acreage was needed otherwise carryout likely would have grown to burndensome levels"-------so, if we didn't have the record-breaking demand carryout likely would have grown too burdensome levels to a point this weather event would be a non-issue to the market. At one point last year we had people discussing a 3 billion carryout until usage exploded. At 3 billion I don't see us rallying like today with a little heat. Nationally we are going to raise a lot of bushels of corn the question becomes will it be enough to service this demand at these prices. If we can get some panic buying of the physical, it should extend the rally. I guess I am not that hung up on textbook definitions of market dynamics. I see this as being a long and slow grind higher well into the 2027 crop year. To confirm the demand rally I would like to see the spreads come in and go to an inverted market around that February/March time. Most producers could care less if the rally is demand led or supply led----they are just happy for the extra cash. The only difference in my eyes is if it is truly demand led it could reach higher levels than we think is fundamentally justifiable. Time will tell. Good luck IN555 I enjoy your posts. |
Rally with the stamina of demand.........
