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EC SoDak | It’s an ebb and flow of the market, demand is and will come back. Ethanol, of course, will have its challenges as it finds its footing with the current administration, especially if it goes on for 4 more years. Feed demand will pick back up as we work through Covid and packers. Exports I believe will get moving, China is already showing its willingness to make purchases. If corn gets so unbelievably cheap due to stocks, will keep our ports busy.
None the less, economics will come into play if stocks get ridiculously large. Folks will have their hand forced by themselves, banks, and the government. I wouldn’t disagree that areas that don’t grow corn and beans well will have to shift. We’ve been in a wetter pattern for quite some time, that’ll eventually stop. Many of the areas in SD that are hollering about how wet it is, is due to no tile. They don’t have tile because normally those are areas hollering about drought. They will get dry again and yields will suffer for it. | |
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Looking forward.
