cancel
Showing results for 
Search instead for 
Did you mean: 
Veteran Advisor

$6 corn.....$20 soybeans????

how high can they go once the rains quit, and the furnance

kicks in?

0 Kudos
4 Replies
Advisor

Re: $6 corn.....$20 soybeans????

No idea what it does to the market but must agree on with what you seem to be implying re: the condition of the SCM crop. It's going to have to scramble like heck to get close to average. And crazy as it sounds with the torrents we've had it needs to keep raining. Grandpa always said wet springs are killers in these here parts. Can only imagine what it would be like without all of the added drainage these boom years have afforded.
0 Kudos
Senior Advisor

Re: $6 corn.....$20 soybeans????

I don't know how high it can go.  It will be interesting to see.  I take it you are suggesting that the futures don't have the future built in yet.

Also, will the heat hit the most productive part of the corn belt or the fringes? 

0 Kudos
Frequent Contributor

Re: $6 corn.....$20 soybeans????

Speculative money will certainly push it where ever and to what ever point they can extract the most money.  My question is what does blow off type action in corn and soybeans do to end users and ultimately to long term demand?  Looking at long term charts, cattle are about where they were in 2012, oil is half.  What would $6 corn do to the ethanol industry?  And feeders have already been struggling with poor margins.

 

Looking at the updated forecasts, I expect the buying to kick in tonight when trading starts.  Hopefully we get some rain without hail tonight in WCMN also.

0 Kudos
Advisor

Re: $6 corn.....$20 soybeans????

The crop could get dinged up a little or a lot.

 

But for now it is fine. Pollination is going to be spread out but mostly 3-6 weeks away. Aug. rains will determine beans.

 

For now, here's the 16 day map, which would suggest we'll stay on edge for quite some time. Where it places the ridge isn't far enough east to cause huge concern or far enough west to alleviate it.

 

http://www.qtweather.com/showImage.php?url=http%3A%2F%2Fwww.cdc.noaa.gov%2Fmap%2Fimages%2Fens%2Ft850...

 

BTW, watching the tropical depression that has popped up in the Gulf of Campeche kind of out of the blue. As it stands right now the high is far enough east that its not likely to puch moisture north.

 

But for anybody who is certain how this thing plays, that's the sort of stuff that can happen.

 

http://www.nhc.noaa.gov/

 

 

0 Kudos