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Winter has finally arrived. We knew it would but thankful it took its time. Spring will be here before you know it. At least that’s what we can keep telling ourselves. Good thing February only has 28 days. The grain markets continue to impress us. The fund managers are long and continue to protect their positions (“If you’re not long, you’re wrong”). The export numbers keep inching their way higher so the USDA will probably need to increase these figures in next week’s report. Will this year’s corn carryout be closer to 1.35 billion bushels and beans around 125 mln bushels? Another question will be how many acres of corn and beans get planted this spring? Looks like the spring and summer weather will be adding volatility to the future markets. Basis has backed off with the run up in the board price. Basis should remain strong through the end of summer. A lot of bushels have exchanged hands since harvest. One additional thing that won’t help basis around for this area was when Ingredion (Penford) shut down it’s ethanol production. This will cut their grind in half. It’s been about a year since ADM shut down it’s ethanol production at their new site. It’s for sale if you’re interested! Continue to check your corn and bean bins. I am hearing about some quality issues showing up. No markets or mail on Monday February 15th (President’s Day). Stay warm and be safe. Bob |
