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marketeye
Veteran Advisor

Corn Has An Export Problem

Here's a real good look at how slow the corn export sales have been so far this marketing year. This is courtesy of FC Stone Int'l and Matt Zellar:

 

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What say you? This means a lot. Ahead of the USDA Reports Tuesday, a separate analyst spelled the farm markets' problems this way: "Large numbers are anticipated for corn, beans,wheat, us carry out and world carryover, these numbers will not go away unless exports increase, the dollar will play a daily roll and world weather coming into spring as the farmer is reluctant to sell at these levels."

 

Mike

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6 Replies
WCMO
Senior Advisor

Re: Corn Has An Export Problem

Just curious, is there a seasonal trend, or does this just suck regardless.  Agree that the relative dollar value and strength has a lot to do with the exports.

 

Part of it is also due to perceptions based on how reports are worded -- for example, supplies or stored grain being refered to as 'stockpiles', etc.

 

A wetter than normal spring, and/or a drier than normal summer, would change the outlook, but not until we get there.

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farmer46
Senior Contributor

Re: Corn Has An Export Problem

Not just corn, anything that is exported now has a problem with the costly do$$ar.  The second problem with exports is credit, less energy income equals less worldwide credit for imports.  The good side,  many producers in grain are nonprofitable thru out the world, which will slowly bring price higher.   

 

Now what should the government do?  I believe time is right to rid of subsidize crop insurance.  Then the government at all levels needs to cut government costs involved with Ag.  Lower the cost of production and decrease the size of the grain crops.

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westernia80
Senior Contributor

Re: Corn Has An Export Problem

Listening to Market Rally yesterday, if I understood the anylist right, because of the dollar value, we are about the only ones loosing money.  Everyone else in row crop is making money hand over fist.

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farmer46
Senior Contributor

Re: Corn Has An Export Problem

Yes, until the producer tried to buy something in US dollars

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westernia80
Senior Contributor

Re: Corn Has An Export Problem

Very true

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k-289
Senior Advisor

Re: Corn Has An Export Problem

Guess it's time for a  ''' NEW '''  jingle  on feeding folks ?     Kinda like the  ''' beef  ''' folks  the price of wholesale drops $30 /  hwt and the idea from some being DOUBLE  the  check-off $$$ -  EXPERT analogy  ---  Price of corn drops in half and volume goes down - hugh ?  Guess  i'm asking  - Did the ''' world '''  go on a DIET ?

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