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jennys_mn
Veteran Advisor

This Probably Belongs in Marketing

But since the people in the Marketing section Booed me off there the last time I posted something like this, I will post it here.

 

For those of you that get The Land paper, maybe you missed the article by Phyliss Nystrom from Country Hedging talking about the corn and soybean markets.

 

What I found interesting, is something that I don't see being talked about, and which I brought up several months ago - that being the loss of our export market for corn and beans, and probably other commodities as well.

 

Phyliss reported that the total export commitments for corn as of last week were 27% behind last year at this time.  Inspections for export delivery are down a whopping 44% over last year.  Beans aren't quite as bad with commitments down 17% from last year, and export inspections down 13% over last year.  

 

The question is, "Why?".  In my book, the answer is simple.  The United States, instead of being a country that is looked to first when other countries need commodities, are looking elsewhere first.  And the reason to me is pretty simple.  We are no longer a country that can be relied upon to fulfill the commitments that we have agreed to.  And for that, you only need to look at what's going on in DC.  

 

Markets lost, take a long, long time to gain back.....

 

Nuf said......

 

Tick Tock.....BONGx10!!!!!!!!!!

 

Jen

14 Replies
BA Deere
Honored Advisor

Re: This Probably Belongs in Marketing

Jen, you are overlooking the fact that the last 3 years the rest of the world has also had record crops just like we have.  The world is "awash in wheat" well wheat gets cheap enough to be substituted into feed rations.  The world has "just in time" inventories, no longer is "keeping a buffer supply" required.  Especially with huge supplies and very little threat that prices will rise anytime soon.

WCMO
Senior Advisor

Re: This Probably Belongs in Marketing

Lots of up and down in those charts over time, for various reasons.  Probably has more to do with location, production, price and relative value of the dollar. 

 

r3020
Senior Advisor

Re: This Probably Belongs in Marketing

Depends on the weather Jen. A lot of fluctuation in exports.

 

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jennys_mn
Veteran Advisor

Re: This Probably Belongs in Marketing

Yep - and when you just hide your heads in the sand and pretend what I said can't affect farm sales....then who are the real fools on here....

 

Tick Tock.....BONGx10!!!!!!!!!!

 

Jen

elcheapo
Veteran Advisor

Re: This Probably Belongs in Marketing

BA you owe me $1 for the use of my copyright term.
elcheapo
Veteran Advisor

Re: This Probably Belongs in Marketing

Folks, it's because of ALL of the above answers
gurly3801539
Advisor

Re: This Probably Belongs in Marketing

Is there a possibility that at the current prices there are only enough sales to cover domestic use and not enough corn and beans in place to be able to export much?

Katzenjammer12
Senior Contributor

Re: This Probably Belongs in Marketing

Bringing up a number of potential influences on the markets and not accepting one perspective as the only alternative is hiding one's head in the sand?  Interesting view.

ihtractortherap
Senior Contributor

Re: This Probably Belongs in Marketing

When and where have we not followed thru on our grain commitments Jen?