In response to the corn position. Who is going to be able to afford our corn at the current prices? Part of the damage that the corona virus has caused. And nothing to do with supply and planting as yet. Same with beans.
I'm beginning to think that we will not see the seasonal rise as soon, during the planting season. Something like the 2014-15 year.
Thanks Mark,
What is really killing the corn is the demand destruction from everything shutting down.
Unleaded spiked to 38c last Monday. Of all the insane market moves, that one stood out the most.
38c for the front month futures of gasoline......WOW!
It closed higher than that but the market sees the demand falling off of a cliff.
This is going to also kill demand for ethanol which is blended with the gasoline, either 10% or 15%.
I thought I read that something like 2 billion gallons of ethanol will NOT be blended.
Total amount is something like 17 billion.
MANY ethanol plants will be shutting down.
I'll get the exact numbers but close to 40% of the production of our corn crop goes to making ethanol. So this massive source of demand for corn is drying up.
The balance sheet for corn has suddenly become extraordinarily bearish because we just lost so much demand for ethanol.
This will come back after the economy recovers but that may not happen completely until we have a vaccine.
