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Red River Valley | SC maybe you could address a couple of things that have me on edge in this bull market
In corn
Smithfield farms is going to reduce their sow herd by 4-5% this reduction is going to happen as I understand it is going to be very rapid maybe is already happening and by fall will take some where north of 1.5 million pigs of fed
DTN reports that Ethanol plants are now operating in the red by $.18 per gal. and ddgs are dropping in price they are looking at run rates slowing on top of this at least 2 plants that were to already start production are in bankruptcy and another 8 plants that were schedule to come on line in first qtr. of 2008 are now back up into 2nd and 3rd qtrs.
In Soybeans
Many of the people that are taking a closer look at china's rapseed losses think that china is overstating how bad the losses are after all this crop was in dormancy when this crop got hit it was a long cool down so plant had time to shot down, there was a lot of snow with this event and the crop was in good shape going into this event. The question about this event is why would china over hype a problem in a crop that they have to import and that is the thing that worries me answer I come up with is that they are thinking about letting a shortage in edible oils happen and are going to use this freeze as their political cover ?
Last thing is not in the grains but I see where Iron prices are starting to get soft and that demand from china is leading the way maybe it is just slowdown from the weather mess they had there but just looking for you thoughts.
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One of Two
