Cost-of-Gain Surging

[errolanderson]

Risk managers note: For corn (feedgrain) growers that want to guard the recent runup in prices as a protective hedge . . . .

A December $4.10 (deep-the-money) put option traded under 16 cents/bu today. Dec corn now trading between $4.00 to $4.05/bu. FYI . . . .

[errolanderson]

Feeder cattle cracked under the strain of rising corn today. November feeders slammed $5/cwt limit down approaching $130/cwt at the closing bell.

The shake across the cattle board is apt to pressure cash cattle bids into late October (IMO). In the fed market, packers are said to be well covered. Western Cdn basis levels are weakening on record heavy carcass weights. Fed price recovery is possible in November as packers gear up for the Xmas demand season, but for now . . . .

Apparently, Brazil has had difficulty exporting corn on supply concerns. This amazing demand-driven grain rally appears the strongest seem since 2014.

[farming101]

Corn above 410.25 tonight. Continued support for feed barley and wheat.

Lethbridge corn quoted at 6.84 last week

[errolanderson]

Corn above 410.25 tonight. Continued support for feed barley and wheat.

Lethbridge corn quoted at 6.84 last week

Lethbridge barley as high as $6/bu delivered for March movement. Battle between export market and domestic is on. But serious losses for cattle feeders.

Grains now overbought, but where is the rollover peak? China has the controls . . . .

[farming101]

China spot corn 11.77 CAD/bu. Jan21 futures on the Dalian exchange even higher

Until there is some clear retreat from these levels I think the pedal will be down quite firmly

[errolanderson]

https://in.reuters.com/article/china-corn-imports/exclusive-china-likely-to-issue-more-corn-import-quotas-buy-millions-of-tonnes-of-crops-sources-idUSKBN2780WS

[SASKFARMER]

Or are countries actually worried they are going to need food if wave three hits. China has lots to feed.

Really would be nice to know what they actually pay our grain companies for grain.

[farmaholic]

Or are countries actually worried they are going to need food if wave three hits. China has lots to feed.

Really would be nice to know what they actually pay our grain companies for grain.

.........thats none of your business, they will pay you just enough to make you want to do it again.

[bucket]

Or are countries actually worried they are going to need food if wave three hits. China has lots to feed.

Really would be nice to know what they actually pay our grain companies for grain.

I am not too worried about price ...it would just be nice to know in advance when the sales are being made....the price will follow...

Right now western canadian farmers are deep in the dark shit of not knowing anything...

[furrowtickler]

China spot corn 11.77 CAD/bu. Jan21 futures on the Dalian exchange even higher

Until there is some clear retreat from these levels I think the pedal will be down quite firmly

Agree , I just find it odd that hardly anyone talked about the grave position China has been in since early summer .
And now it like some big deal .
Glad to see everyone waking up lol .
Hopefully this keeps markets strong all winter