It looks like the markets are going to finish the week the way started it on a downward trend. Corn is currently down 2. Here are some market movers this week and in the coming weeks:
• China and the US plan to hold talks in October which will be the 13th time, lets hope its lucky #13.
• Ethanol production for the week averaged 1.013 million barrels per day which is down 2.41% vs last week and down 6.81% from a year ago. This was the lowest production week since early April with stocks sitting at 23.8 million barrels as gasoline demand starts its seasonal decline.
• Early yields from the south are all over the board, but most are higher than early expectations.
• US weather forecasts remain favorable with no season ending freeze in sight.
Not a lot of upside at the moment as traders continue to trade the lack of demand for US corn and soybeans. Unless something dramatic happens on the demand side of the equation, we are guaranteed to end up with a carryout north of 2 billion bushels. 2 billion bushel carryout equals prices in the $3 – $3.50. Many producers are still sitting on old crop corn that they want/need to move before harvest and the market is not offering many opportunities. If you are one of these producers, give us a call to see what options we have to add to your bottom line in these tough times.
Have a safe weekend.