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| Contrary to NAT policy and opinion end user expansion is not forced to occur with lower grain prices. Shoot we had low corn prices forever and only over produced the meat market a few times - generally during those times hogs were mortgage lifters and college tuition payers (not so much anymore). Losing money has got old and demand for the product has a pretty thick ceiling right now as well (relatively high price, sluggish economy). So, that means that less corn gets eaten.
On the supply side, there were more than a few guys in what appears to be hurting area's now winning the lottery - got a little rain and had good yields in the face of $8 corn waiting for $10. Those extra bushels are probably what's in bins everywhere. Naturally for those of us in the 'real world' of 2012 grain never got close to the bin.
So maybe there are a few more bushels out there and demand is pretty much stagnant over the whole year. Of course there is no way to tell this from the USDA since it's part of feed and residual (and whatever to make our numbers work).
Btw, it's seems like almost every day there is someone on the news saying we are coming out of recession, it's getting better. In truth it's probably getting worse since as financially attractive as unemployment is, it doesn't buy much more than dorito's and a bag of pot. When the voting public figures out it's not as dumb as the 'smart guys' running the show say they are, maybe they get thrown out of office and some things change, but we have a ways to go with current leadership and voter sentiment. It's made a difference every time. | |
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MK Farm
