Oops! Just happened to find 300 million bu. of corn

[Paul]

According to analysts at CME, they says the USDA found 300 million more bushels of corn. Complained, "they did it to us again". I just got to scratch my head and wonder if somebody somewhere is lying when it come to these reports or is God now multiplying corn like the fishes and loaves!  Paul

[Blacksandfarmer]

Paul the way I see it USDA can screw the numbers up all they want. Most crop farmers have had plenty of time to lock in fall or winter grain sales. What will be interesting is how high the price will go if China steps up their buying of grain at a cheap price and USDA somehow "losses" 500 million bushels at some point in time. I believe USDA is playing Russian roulette and betting on good weather for the cornbelt. This report could come back to haunt end users of grain in the long run.

[nwobcw]

   I do not put much faith in anything gov't. connected.  Just as in income tax deductions, credits, etc. the gov't. picks winners and losers.

[Paul]

I agree about the betting on a good crop year and that's what they are basing their numbers on. However I feel part of this was to lower the price of corn for the ethanol plants since they released 60 million barrels of crude oil from our reserves to lower the price of oil. Otherwise ethanol plants would be hurting from the high price of corn. I also believe a lot of farmers didn't contract yet due to the very late planting and fear of an early frost.  Back in the winter all sides were saying no country can afford to have a bad year because of very low grain stocks. It's a numbers game and the numbers are getting very extreme anymore. CME want to move the daily limits on corn to possibly as high as $1.05 per day on contracts. You could be rich one week and poor the next! Paul