There is a considerable stretch of my part of the world that if rain came SOON could still do quite well... If this weather pattern holds for more than a couple days it is going to start burning bushels though. Market would seem to be taking a breather.
The thing that strikes me about the current market situation is the strength of the near term contract. Would seem to indicate to me that there was/is considerable open capacity to increase current inventory for future use. I could be wrong, but it would seem that a lot of high priced traders and the buyers they work for thought low prices were here to stay so why run excess inventory, especially if there was thought to be a "burdensome" supply situation, with consistent downward pressure.
For those that didn't take advantage of the low prices to stock their silos I really have no sympathy.
The thing that strikes me about the current market situation is the strength of the near term contract. Would seem to indicate to me that there was/is considerable open capacity to increase current inventory for future use. I could be wrong, but it would seem that a lot of high priced traders and the buyers they work for thought low prices were here to stay so why run excess inventory, especially if there was thought to be a "burdensome" supply situation, with consistent downward pressure.
For those that didn't take advantage of the low prices to stock their silos I really have no sympathy.
Comment