News & Commentary
November 16, 2013
The markets give & the markets take away. It's been awhile since a pervasive bear market has
With large production then one would expect an extended period of lower prices. How long
One, next year's weather will again be the dominant variable that will determine supply. So if
Two, demand has plateaued for ethanol. The reality there is a blending wall determined by the amount of consumption that we have.
Three, lower prices should stimulate more exports and feed demand. We know for example last year a lot of wheat and other feed products were substituted for corn as corn prices rationed themselves out of the market.
I could go on but you get the picture, increased supplies somewhat stagnant demand with environmentalist trying now to squash ethanol as a bad thing. I may not have always been in the
So given the current picture the path of least resistance seems to be lower. Without some
I know a lot of farmers say they can't raise it for less and I know thats true but in reality
Wheat also is struggling. The demand story has waned somewhat and production issues around
Perhaps we'll be able to rally once again but with large acres planted in very good condition
Till next time,