By Doug Tenney, Leist Mercantile
Typically, the February USDA reports are non-events. However, grains all closed lower that day. The corn sell off resulted in 10 successive days of lower closes.
This month’s USDA reports included the monthly supply and demand reports. Corn ending stocks increased by 20 million bushels to 632 million bushels. Declining exports were to blame. They were lowered 50 million bushels to 900 million bushels. This is the lowest number since the early 1970s. The drought last summer as well as plentiful corn supplies from Brazil and Argentina has had a dramatic effect on U.S. corn exports. Mid-February they stood at just 326 million bushels. Last year at this time they were 741 million bushels.
Corn basis levels are at record numbers for this time of year. Central Ohio has seen values of 20 to 40 over March. The high corn prices seen since last summer have certainly had a dampening effect on ethanol production.… Continue readingRead More »