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| was just reading the "white wheat report" for last week. He had a couple quick thoughts that I'm mentioning here, fwiw.
1)There are more critters on feed than a year ago, but USDA has corn fed down 5mb, sorgum down 59mb, barley down 51mb and wheat up only 28mb----- for net drop of 87mb? What did they feed them?
2) China buys large amount of corn on same day as USDA announces low feed and high carryover?
3) China's corn production raised 4m tons same day as #2? (even when they had bad weather earlier?)
4) China gets more active buying as their corn harvest is wrapping up? Did it not come in a great as they claim?
Tough to make the USDA math work.
So, if Europe doesn't all go down the tube this winter/early spring and destroy the world economy, I believe there will be a reckoning when the demand for corn/feed has actually sucked down supply in the channels way more than USDA is showing us. I don't believe alot of the Texas animals in severe drought areas went for slaughter like we might have seen in the past. I believe a lot of them got moved north-I know for sure alot of the sheep did.
Just a couple optimistic thoughts for the crop farmer.
Art | |
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couple thoughts on ag commodities
