Death comes to us all. Life's but a walking shadow | Last year despite the fact that Iowa & Minn. had some lost corn acres there was plenty of corn well distributed throughout the country. The situation this year is quite different. Rough estimates suggest that even with the most optimistic yield projection and their generous Sept stocks Illinois will just breakeven and Ind. will have a serious corn defict. Think about it, Indiana, one of the biggest corn states (not necessarily in acres but concentration) will be short corn. And not just by a little. In normal years a good deal of Indiana, Illinois & Ohio corn moves to the Northeast and Southeast. In addition, unlike last year's bumper crop, New York will have a mediocre crop at best, as will North Carolina.
Corn is going to need to move in non-traditional ways from areas of surplus to areas of defict. In order to do so it will be need to be purchased and transported. The simple act of getting it bought and transported will cause the price to be negotiated. Buyers won't be able to claim there's all this unpriced corn available to buy because they will be forced to actually bid for it. They will have to go into the market place and price it. Those endusers in Iowa and Minnesota who have always had excess supply and very advantagous markets may find themselves competing for product.
The corn buyers here (NY) are already positioning themselves for the inevitable by stockpiling whatever supplies they can.
It may be late spring before the consequences of the excess precipitation become obvious but I'm reasonably certain sooner or later it will. Hopefully producers in Iowa & Minn. will be able to hold out until then. |
Atta boy Donnie boy
