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Veteran Advisor
Posts: 2,774
Registered: ‎02-11-2013

Just what does Chicago want ???

Report of biggest soybean sale in history and we
Close only 4 cents higher

Something ain't right
Veteran Advisor
Posts: 901
Registered: ‎05-13-2010

Re: Just what does Chicago want ???

So.....if the US ethanol industry put out a press release in the morning, saying they are going to buy 3 billion bushels of corn next year from the US corn farmer.....

 

would corn go up 10-20 cents on the announcement of this big "purchase"???

 

in fact, this 484 million bushel "sale" is 13.2 MMT for a country than imports 79.5 MMT

 

scratch that 3 billion bushel number from above and make 1 billion to make closer to comparing reality

 

let me know when you find some verbage saying there is a penalty for not completing the transactions

Advisor
Posts: 9,135
Registered: ‎02-06-2014
0

Re: Just what does Chicago want ???

Back in the day the Japan and Taiwan delegations made the rounds most every week to publicize their purchases for political purposes.

 

Might still for all I know, may just be so regular that nobody cares any more.

Veteran Advisor
Posts: 2,774
Registered: ‎02-11-2013
0

Re: Just what does Chicago want ???

I guess using that logic soybeans should have went
Down because we didn't sell more !!

We should be happy we had a good sale...

As far as the comment on corn...yes if someone
Announced they are buying 3 billion bu of
Corn.....yes I think it would move the market.

Just what is then a significant event to move the market s. ??
Veteran Contributor
Posts: 92
Registered: ‎11-15-2012

Re: Just what does Chicago want ???

[ Edited ]

Elcheapo I would not worry too much about a Cargill guy telling you the market does not have to go up!

 

Ask them why the price of fertilizer can't come down, would you believe all the explanations they come up with?

Spoiler
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Smiley Very HappySmiley LOLSmiley Very Happy

 

Contributor
Posts: 6
Registered: ‎05-27-2015
0

Re: Just what does Chicago want ???

The report would have to come from a factual, respectful source such as the USDA. For all we know it was a $53 dollar sale to China. I can't trust this information without the verified stamp of approval from the USDA.
Highlighted
Veteran Advisor
Posts: 2,774
Registered: ‎02-11-2013

Re: Just what does Chicago want ???

Verify by the USDA !!

Thank you I needed a good laugh !


Oh the fert. The coop is telling everyone to produce
To the max, since each bu is low priced.. So feet will stay up there
Senior Contributor
Posts: 1,278
Registered: ‎06-14-2010

Re: Just what does Chicago want ???

"Factual and respectfull USDA" now there is the laughable part of that post.
Esteemed Advisor
Posts: 2,468
Registered: ‎04-29-2011

Re: Just what does Chicago want ???

Ray.....come on man.   Comparing the U.S. ethanol industry to China?  You need to get of the office more.   Apples and oranges my friend.

 

 

Veteran Advisor
Posts: 901
Registered: ‎05-13-2010
0

Re: Just what does Chicago want ???

I did a poor job crafting the analogy....

 

the net of it is is this:   if you have a ceremony and announce you are going to buy beans.....the same beans you were going to buy anyway........after the second, third, or fourth time----it becomes a non-event to the market

 

as far as the ethanol industry-----you now have an industry that has grown from less than one billion bushel usage to over five billion...and now that the mega-growth phase is over, the fizz is gone from the pop bottle until you have a short crop in an inelastic demand market...