Corn was down several dollars per tons on Monday morning as Midwest growers are expected to be 25% planted on what should be thousands of more acres than last year.The weather outlook should also allow for continued planting. By this time last year, corn was only 15% planted.Current new crop clock offers are in the low-to-mid $180s deliver for rolled corn, with nearby spot prices about $10/ton cheaper. Over the last 20 years, farmers have built an immense amount of storage for their corn and will try to hold out as long as possible from selling at these levels. That should keep basis high for the summer months.The vast amount of on-farm storage could also help mitigate some harvest pressure. But with ethanol plants shuttering, could corn (like oil) have storage issues. Predicting what could happen during Covid is impossible, but these are conversations worth having.Canola in the nearby is flat in the upper $280s delivered. New crop offers from suppliers remain non-existent, which adds some risk premium to any offers from California grain and feed companies.Cottonseed is lower today for spot and new crop as demand from dairies and oil mills is in question. Supplies through the summer should remain tight as we rely on just-in-time inventory, but trains should arrive this week.To get offers delivered to you, please call your PNG salesman.
Thank you,
Paul Quinn
|
|
