Markets continue to search for traction after the heavy losses in the stock, energy, financial markets. It is important to know that fundamentally nothing has changed. But the resolve and necessity of holding very long futures positions is being re-evaluated daily. Me thinks it probably got cold enough last night that there could be some winterkill, not just in the PNW, but other parts of the country as well. Early snow melt, and strong demand for barges back east on the Ohio, Illinois and Mississippi rivers has barge rates running 360-400% of tariff. That is just one more thing to be thankful for here in the PNW. Can you imagine trying to manage barge rates that trade up to 4X the normal rates?

As we mentioned before, fundamentally things don’t look any different today than they did last week. On paper we will totally run out of SWW and DNS this spring. Better world diets, stronger economies/ demand and very low stocks all point to better prices. The volatility comes not only from the specs and their activity, but also from the very tight stocks. They tend to cause higher markets, with larger fluctuations. Back in the day when we had reserves, the market could easily rest knowing that there was not going to be any immenent shortage. Trading happened in a lot flatter trend lines back then.

In some parts of China, farmers are just giving up the land and moving to the cities where there is some money/ jobs. Most likely it will eventually lead to fewer/ larger…most likely more efficient farms, but it is changing the demographics in China. Growers in Western Aussie are NOT in favor of delaying overhauling the AWB. They say there is no reason to wait till July/ and new legislation, just as well get started on it now. Indonesia cancelled all import duties on wheats/ beans, and overnight SK booked another 8.7 myn bu of corn. Also Paki returned and topped off their tender with another 2.2 myn bu of NON US wheat. UAE will build a $60 myn grain handling/ storage facility in the port of Sadr.

***Didja Know: Cigarette lighter was invented before the match was? That it is estimated that over 50% of the world’s population has never received a phone call? The only 2 words in the English language that don’t have a word that they rhyme with is Month and Orange. From birth your eyes never grow, but your ears and nose never stop growing????

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***All bids are subject to change, please call for CONFIRMATION of prices. All information in this letter is from sources deemed reliable, and is for informational purposes only***