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Here
are a few subjects affecting the grain markets lately:
· Concerns abound
over the condition of the winter wheat crop. Has the
snow / ice cover killed it?
·
30 and 90 day weather forecasts show favorable growing conditions
for southwestern US wheat.
·
Some wheat is working its way into feed rations south of
us due to higher corn prices. This coupled with winterkill
concern has wheat very well supported.
·
South American corn and soybean crops look very good, record
production is possible. This is taking a little of
the urgency off of our declining stocks situations here
in the US.
·
Wet weather is causing some harvest delays in South America.
This may hurt quality and quantity if it persists.
Soybean rust has been controlled pretty well this year.
·
Concerns are already developing about the potential for
planting delays in portions of the Corn Belt. Several
forecasters are now broadcasting a wet pattern for late
Feb-Mar in the Delta/southern Corn Belt. We obviously
need near perfect conditions this coming planting and growing
seasons to accomplish record production requirements.
·
There has been more and more talk about the prospects of
a hot, dry summer here in the US due to a possible La Nina
weather pattern developing. This raises the odds of
below trend yields.
·
For exports, we're currently 23% above last year's corn
sales at this time. USDA had projected only a 5%
increase. Soybean sales are 28% above last year
vs USDA's outlook of a 16% increase. Wheat liftings
are down 13% vs USDA's 14% expected decline.
·
The March 1st Ag Outlook Meeting will give us
early indications of USDA's balance sheet ideas concerning
the 2007/08 crops but official numbers won't be released
until the March 30th acreage report.
·
Locally, weather issues have trucks busy trying to catch
up. For those interested in our help moving grain
before you become busy in the field this spring, we suggest
you call soon to get on the list. You'll find our
prices competitive with anyone else.
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