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| This deal brings back memories....history repeats BUT NEVER THE SAME WAY...If this per acre yield would drop to the 155-157 area the world faces a serious problem. DDGS exports are exploding & taking away soy meal market share....at this moment Prompt loading of a container of DDGS is Mid-October. China cannot get enough of the stuff. The next shoe-our animal numbers are up slightly...and we are entering the cycle where meat prices will soon recognize the increased costs: THEREFORE, feed usage is going to be tough to ration. I think the number today for Feed & Residual is too low. You have to add another 50 million to the exports...the ethanol "crush" is improving...so the exports will be the ration leg & that may not be easy. Most markets break at some point to shake the tree.. but....I have not yet looked at the commitment of traders report but again "I would not be spec short this market with stolen money." Note I uploaded a visual explanation of "Ankle Grabbing."
http://www.perspicuousrisk.com/ | |
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USDA
