February certainly is not starting out very well as both corn and beans were lower again in response to active rains in Argentina and Southern Brazil. Many analyst now see soybean crop potential stabilizing with the South American crop now estimated down around 290 million bushels from early December estimates. Current world carryout estimates suggest that we could sustain a 440 million bushel reduction in soybean production before supplies get overly tight.
The corn market seemed to follow soybeans lower at the open. Market losses were extended on thoughts that we are continuing to see decreased demand from all sources; export, feed and ethanol. A major ethanol producer today released an estimate suggesting that 2.7 billion gallons of ethanol capacity is currently idle with more likely. A 101 million gallon plant located in Pekin, IL announced today that it is halting production immediately will obviously add to the total.
On a positive note, basis levels for corn and beans delivered to many local markets are at the best levels of the year with slow producer movement leading to a tight pipeline. Check out current levels at various delivery points on our bid sheet and give us a call.
Thanks, Phil Farrell
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment