- Looking at the December 2015 corn contract there’s really no clear direction in the market. We continue to be in a sideways trading pattern but still in the downside trend. However there is almost a Golden Cross forming (very bullish). We will continue to keep watch, but there will need to be big spark in order to get this market started. (Please see 2015 December Daily Corn Futures chart provided by www.qtplus.com below chart below or in the Daily Video or Power Point Presentation)
Source: www.qtplus.com
A friend came up with these questions:
1 Corn planting acres this year?
2 Late planting?
3 Russian wheat drought?
4 Dollar value abroad?
5 Oil might drop until the fourth quarter 40 to 80 per barrel? Will oil
fracking stop due to low price?
6 California without water for crops? Will we in Midwest start growing more
truck crops?
8 Isis and what the USA created for the world to deal with?
9 I noticed the jet stream all winter with movement from south to east of
the smokey mountains, Will it change this summer or will we be dry?
What do you think? Lots of variables out there, aren't there? Some of these are just talking points but some have more impact on price.
Ed
I am sure that the weather accounts for much more variations than any political debates, but count on the industry to keep prices as low as possible, especially for corn, which needs to be cheap for animal feed but mostly to produce many industrial substances, not just ethanol and HFCS.
ReplyDeleteI just read that while Argentina's soybeans are 99% GMOs, they don't pay a premium for seeds, as the local legislation authorizes them to plant their own harvested GMO seeds. As you mentioned earlier, they struggle to transport the crop to harbors, but once they have the infrastructure in place, I wonder if they could be big competitors not just for American exports to Asia, but maybe also for the American internal market.
Yes, the South American situation is not fair and I don't understand why farmers would support that but they still do in droves. Over 90% of the corn, soybeans, cotton and something else, is it canola that is GMO?
ReplyDeleteI am surprised this record strong dollar has not hurt more than it has but maybe that is still coming. Cost of production and 2015 weather will have a big impact and some of not till next year.
Yes I agree that when that infrastructure is in even more land will be cleared down there and America will become an even weaker competitor but their politics and economy is still very vulnerable.
Ed
another reader emailed "The statistics say we are living longer and the real question needs to be asked, is our qaulity of life better with our longer life? Look at our forefathers and their long length of life! Many lived to a ripe old age but this was the key;
ReplyDelete1. Food was grazed of caught in a river free of pollutants
2. Air quality was never an issue
3. Stress and related where less
4. Everything was fresh other than winter and usually they canned most of these materials or foods where in a fruit cellar!
Life has changed and we are lead to believe for the better? But what is the definition of better?
The "ripe old age" was probably about 50 at the time, not 80...
Delete"What is the definition of better" can maybe be answered by other statistics, like the Happiness Index, or Gross National Happiness:
http://en.wikipedia.org/wiki/Gross_National_Happiness
Thanks, Chimel!
ReplyDeleteI was looking for blogs related of animal feed prices . then I found this blog, this is really nice and interested to read. Thanks to author for sharing this type of information.
ReplyDelete