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| Ocean freight has been declining. This is a cyclical market like the rest. Some of this is due to a general decline in economic activity. I do maintain a lag relationship between soybeans and freight rates, but have not had the time to look at it this morning. Will post that when I have time.
Export data is positive. Argentina appears to be subject to a dry weekend. Rio Grande de Sol of brazil area is a bit dryer than in past few days. Brazil however is in good shape.
My Manhattan friend appreciated the input, has digested it...also expresses his feelings on spring wheat....I have reworded his comments ..as they are sent also to a few folks around the world....his summation:
Hi protein wheat is a very valuable item. With prospects of lower HRW wheat area, this is not likely to change any time soon. Spring wheat country is also part of the acreage battle now! So Mpls and KC wheat should maintain strong premiums to Chicago. How Mpls stacks up vs KC will be determined by spring wheat planting numbers. Too tough too tough to call at this moment..
The current stiff premium of Mpls vs KC may in part be due to need to price new crop Mpls high enough to prevent acres lost to corn and soybeans this spring! The acreage battle just gets more and more complicated.
Producer costs indicate corn is still more profitable than soybeans. Means Nov Soybeans is still “the best buy”.
Edited by SeniorCitizen 1/17/2008 10:09
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Early...Actually later than normal thoughts.
