Been busy with Wheat Harvest.. we're mostly done save a few mudholes here and there.. Good harvest for us.. less acres.. slightly above average on yield but drops off fast to our west.. Hail and drought concerns out there.. dryness and winds have returned.. dryland fall crops will become stressed soon.
Ethanol. Each week we see more production coming back online. so that's good we've drawn down ethanol stocks so the market keeps trying to put margin back into it for the ethanol plants then the Oil Companies or someone slaps em down. The pressure on keeping margins thin are making ethanol cheap.. and maybe halting the Crude oil move higher.. along with a resurgence in Covid.
If we have to shut down the Country AGAIN.. that will be bad.
If we can continue to see improvement in driving.. that will be helpful.
We need to keep the pressure on EPA NOT to Go around the 10th Circuit ruling by back filling waivers.. which I wouldn't think the Court would like either.. If Trump administration allows this.. it will probably cost him Iowa and the final nail in the coffin.. So it's going to be an important matter.
If we have a big crop? If the drought doesn't expand in the SW.. ethanol margins could improve and the grind should improve somewhat.. but the ethanol producers have been hurt enough that they are not eager to grind themselves into negative margins at this point.. Valero et all are slow to restart.. last I heard.. so.. the ethanol sector is not eager to bail out the corn market from a big crop at this point.
And it's possible that we may not see the sector return to where it was any time soon.. I hate to be that pessimistic.. but alot is on the line right now. Lower corn prices will probably work things out for all involved. If we have the crop coming that some say we do...???
Probably owning an ethanol plant will pay vs farming.. the plants have worked for the farmers.. probably gonna switch now.. farming will suck and ownership in a processor will be better...??? idk.