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Pierce county WI | Deep breath step 1. How much is cash rented, and can you renegotiate? Cheaper seed, cheaper inputs. What's your rotation? If the possibility of PP, then take it. But step 2, don't panic! Let's look at some fundamentals: the bright spot in the wasde was ending stocks were under expectations. So somebody is buying, or feeding, or it wasn't there. Exports have been great the last few weeks. I expect them to get better as prices decline. Currently south American production is cutting a little, still a record, but less. It's dry for the safrina crop. Now, the ethanol thing is bad. But- let's look at the numbers. Arlan Suderman just said they expect a drop of 50% in the ethanol grind vs a year ago for the next couple of months. So, if we recover that's 50% of 20% for the year, or 10%. So if we take away the sres, how much will we drop. Are we going to the moon price wise? Probably not. But take a good look at the calendar and think about the planting number yesterday. Maybe it's an over reaction? | |
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What are the options?
