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Fontanelle, IA | Indy - in my mind, you are right and wrong at same time. Yes, price risk is /was down because we were going to plant corn because......
1. Trade war was NEVER going to solved with China. China didn’t need our beans and never was moving forward. Beans were going to $6...
2. Corn “sitting in snow drift storage” in the Dakotas and Minnesota. Would never get harvested - bushels off the bottom line once all the surveying, resurveying, and re-reserveying done.
3. High moisture harvests.... lower test weights... bins going bad... farmers dying in entrapment of crusted grain. Grain wasn’t/isn’t going to go the same distance as years past. Basis screamed tightness....
4. Animals on feed higher than ever.... have to wait for 2nd and 3rd quarter USDA stocks to get a better, cleaner, clearer picture of feed demand
We got a partial win with China phase 1... we were all just waiting for the acreage battle. Saudi -Russia oil feud combined with corona virus were the 2 Big ugly heads on a Black swan.
So, Maybe some “hope” was combined in a “fundamental” marketing outlook?... | |
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97 mil on corn.
