BOB'S REVIEW
January 12, 2018
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January 12, 2018  01/12/18 2:02:57 PM

Another USDA report day has come and gone.  The only thing we know for sure is the world is well supplied with inventory in the short term.  The only glimmer of hope for our grain markets is still the talk of dryness is some pockets of Argentina.  The anticipated short fall in the Argentina crop could be make up with the supply of Brazilian corn and soybeans.  Brazil should be harvesting some early beans in 30 to 45 days. 
 
Results from today’s report are as follows: 
Corn production  -  14.604 bln bushels or 176.6 bu/ac yield on 90.429 mln acres harvested. 
Bean production -  4.392 bln bushels or 49.1 bu/ac yield on 83.119 mln acres.
Dec 1st corn stocks - 12.516 bln bushels
Dec 1st bean stocks – 3.157 bln bushels
2017/18 corn carryout  -  2.477 bln bushels (+40 mln from last report)
2017/18 bean carryout  -  470 mln bushels (+25 mln from last report)
 
Corn and bean basis numbers continue to stall strong with the amount of bushels available for shipment.  I would expect these numbers to improve with very little farmer selling.  Like I’ve said before some major production or geopolitical issue must happen to get the funds into the buying mood.  It might be tough to get their money out of the stock market with the returns we’ve been seeing the past year.
 
The main topic at the coffee shop the past week is the tax benefit of doing business with your local cooperative verses a private business entity.  It’s way to early to tell if doing business with us will save you 20% in taxes.  This whole thing is a moving target.  The actual rules for the 199A deduction have yet to be written.  Continue to be in contact with your tax person for further updates.
 
You should have received a deferred equity check in the mail right before Christmas.  This check was for ½ of your 2008 earnings.  We’ll be sending out last years patronage checks around the first of March.  Thank you for your business.
 
Stay warm and have a good weekend.


Bob
 
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