Morrow County Grain Growers Pendleton Grain Growers
Duane Disque or John Ripple Jon Sperl
1-800-452-7396 or 541-989-8221 1-800-422-7611 or 541-276-7611
or Dan Steiner 481-6614 (office), 571-3798 (cell) graingrowers@centurytel.net
GOOD MORNING!!!
Even though there are no markets today, we will try to keep you up to date with the news that affects the markets….
International: SK (South Korea) passed emergency plans to lift import tariffs on 70 different products (including corn/ wheat) to try to curb inflation, which is spiraling out of control pretty much world wide. Grain traders are enforcing “Force Majeure” against Argie bean shipments. Force Majeure is a term which is usually reserved for natural disasters (like hurricanes) or war, but is used for circumstances beyond the control of the traders. Argie farmers have been striking for 6 days (it was initially thought this would be more like a 1 or 2 day protest) against the Argie government of for placing a “sliding scale” on export duties. This scale unfairly punishes the Argie farmers, who are finally having a decent year…the other issue is that the farmers feel that though they help generate immense income, very little is spent on infrastructure, like roads. The result is that 5-6 shipments have already been re-routed to the US. EU has accepted a GMO corn variety produced by Syngenta for import by 3/28. This corn must come in processed and is only for animal feed…not for planting, still it feels as though things are nudging a bit closer…
US: COF (Cattle on Feed) report shows placements up 2% in the US. Net result is feed usage numbers will be strong/ stronger. US DDG exports have doubled since the beginning of 2007 and are up 3x since 2004, as end users become more accustomed to quality/ and availability. Mexico is the #1 destination of US DDG’s. Spring weather is still unsettled…looks like Puxatawny Phil was right, and we are in for the full 6 weeks of weather. Flooding/ cool weather will get more attention as worries of planting delays grow. The majority of the corn country likes to be planted by May 1st, but what makes this year so different is where the corn acreage will be, and what the typical production yields are for those areas…IF for example Illinois remains down 1 myn acres for corn (with wheat instead), it skewers the whole formula since Illinois is one of the most productive corn states in the US…In many parts of the country growers are unable to sell grain more than 60 days out. Many marketing tools have been eliminated (due to cost to provide by the grain company/ Co-op). Basis only bids, or extremely wide basis (protection) is common in many parts of the country.
***Didja Know: To write with a broken pencil is pointless…When fish are in schools they sometimes take debate…A short fortune teller that escaped from prison was listed as “a small medium at large”..the thief that stole a calendar got 12 months…a bicycle can’t stand alone, its two tired…you are stuck in debt if you can’t budge it….
