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09-24-2015 06:48 PM
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
09-24-2015 07:55 PM
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.
09-24-2015 09:24 PM
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. ??
09-24-2015 09:40 PM - edited 09-24-2015 09:42 PM
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?
09-24-2015 11:01 PM
09-25-2015 12:50 AM
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
09-25-2015 07:46 AM
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...