the coming grain rally
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Started by bear - Aug. 5, 2020, 2:29 p.m.

for all you farmers who are hoping for higher grain prices.  looks like corn and wheat are getting ready to rally. 

By wglassfo - Aug. 5, 2020, 5:19 p.m.
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I was not aware of this

I hope this is good news for our family

Your observations are not wrong, as I have noticed, reading your posts

Many tks

By mcfarm - Aug. 5, 2020, 5:44 p.m.
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not that its a big enough area to affect national corn prices but more and more reports of very dry areas in NC Iowa....many crops going backwards

By Jim_M - Aug. 6, 2020, 10:49 a.m.
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I don't know if you can compare corn prices of 20-30 years ago to today's prices.  Was corn ethanol even a thing back then?  If it wasn't for ethanol, corn prices would be at $2.  Given the weak crude demand and corns ethanol crutch, I don't think you can expect much life out of corn prices because that corn that isn't being used for ethanol goes into stocks.  Plus the fact that corn grown per acre has probably doubled since 1990.

By metmike - Aug. 6, 2020, 1:27 p.m.
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Good points Jim!

Corn ethanol did not begin to be a big deal until around 15 years ago.

Yes, take away that demand and corn prices would be around $2. 

The bad thing about ethonal launching corn into a much higher price trading range is that it has hurt our exports.

New crop exports over the last month have been at record highs though.

The weakening dollar, along with low prices is helping and other countries(China) must be running on low stocks.

By Jim_M - Aug. 6, 2020, 4:02 p.m.
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I’ve seen videos on YouTube about moldy corn stocks in China.  Take that for what it’s worth.  Did I read somewhere that Army Worm is a problem again this year in China?

By wglassfo - Aug. 6, 2020, 7:55 p.m.
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You are correct according to my info

China has an infestation of locusts which they have battled all summer

Flooding has caused stored corn to go moldy

You have read about the record rains threating the Three Gorges Dam

So flooding would seem accurate re: moldy corn

They are trying to use what they can of moldy corn but any livestock person will tell you that is hopeless