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US Corn 'single selling desk'

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    US Corn 'single selling desk'

    Charlie,

    I have to chuckle as I read this:

    A Weekly Update From Your Friends at the Red River Farm Network


    Monday, July 11, 2011

    Strong Basis — The corn basis has strengthened since the sharp decline in the futures market. Money Farm President Mike Krueger says feedlots and ethanol plants are having a difficult time trying to buy corn. “Traditionally, in parts of western Kansas and down in through Oklahoma and north Texas, the feedlots had a buying radius of 50 to 60 miles to buy corn, they’ve been having to double and sometimes, triple that mileage," said Krueger, "We know of ethanol plants that are railing corn in a long, long way by shuttle train; first time that’s happened since some of these plants were opened, so as much corn as the government says is out there, then farmers certainly locked the bin doors and just aren’t going to sell after this steep price break.”

    #2
    China just bought a few boat loads of the stuff hmmm .

    Comment


      #3
      Will need to follow China's policy on corn imports carefully. Should be good opportunity to export western Canadian feed wheat south and Asia. Current feed wheat 200 % EPV $190 to perhaps $195/tonne depending area.

      [URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/epo/epo-wheat-2010-feed-20110711.html"]Feed wheat EPV[/URL]

      Current GDC programs. I will note the format. The CWB does work with grain companies today to develop marketing products for farmers via guaranteed delivery contracts.

      <a href="http://www.cwb.ca/public/en/farmers/contracts/gdc/">Current GDC offers</a>

      Comment


        #4
        Will need to watch corn. China is one issue. The other is delayed crop and a 6 % stocks use ratio off the combine. Implication is less than 3 weeks supply so new crop will need to move straight to market. This is leaving the number of acres and production from the 2011 crop off to the side.

        Here is today's CBT corn chart (nearby). Basis levels/cash will add a different set of dynamics.

        [URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=ZCU11"]CBT Corn Sept[/URL]

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