On the Grains
Flash sales, that’s what we have in the market place to trade, as yield reports have become market noise. Yesterday we hit the corn number for 3.9 million bushels to our favorite unknown friend. The weekly sales reports out this morning will provide direction to finish out the week. If you believe the harvest pace numbers from USDA, some are calling for a harvest low already being established however, with 35% of the crop to be harvested I would expect some puking yet as what won’t fit relocates to town and then it’s a question of whether it fits in town. Reports of elevators going full and waiting on railcars remains a hot topic with producers trying to finish up. Make no mistake demand has been great but when you harvest nonstop from start to finish sooner or later we see the system plug. Ethanol grind numbers, released yesterday, had production 2.5% higher than last year. It’s way too early to talk yearly grind numbers but it looks like we should meet the 5.345 billion bushels that the USDA is projecting and likely exceed it if we have a good summer driving season.