Death comes to us all. Life's but a walking shadow | I don't argue at all with you central premise but I am curious as to what happens to the "use" during the harvest period. Notice how during harvest the use is 150 million bushel (340-200) greater than later. Obviously this goes into merchants' and endusers' stocks. Since facilities like ethanol plants and HFCS processors never can store anywhere near what they use can we assume that most of this goes into feedlot bunkers and export elevators? It is my impression that exporters don't really have that kind of capacity either but I could be wrong.
No matter how I figure this it seems to me that overall supply will still control the price until at least next spring. I think the real questions are "how big is this crop really?" and "how much extra demand will the low prices bring?" |
BULLISH 18 Day MA
