Market Matters Blog
Katie Micik DTN Markets Editor

Tuesday 06/25/13

Corn Margins Face Headwinds
A recent Rabobank Food and Agribusiness Research and Advisory report explained that slower corn demand for ethanol, questionable Chinese purchases and competing suppliers will help keep corn prices subdued (at around $5 per bushel) in the next three years. Tighter margins for U.S. growers could cause corn acreage to contract by 5 to 6 million acres.[Read Full Blog Post]
Posted at 4:55PM CDT 06/25/13 by Katie Micik | Post a Comment
Comments (1)
An air mattress was bought the other day to go camping with the "kids". (The ole bones do not work to well after being placed directly on the ground.) The darn mattress leaked. I tried to put it back in the box to return to the store. It did not fit. It appears, to us, that more corn acres need to be put back in the box to hit RaboBank's optimistic projection. They noted 5 to 6 million acres need to be trimmed. We think that needs to be 7 to 8 million acres. That would be about the same as planted in 2010. Planted corn acres in the US increased about 9.1 million acres from 2010 to March's 2013 projections. Seventeen states increased planted corn acres by 100 thousand acres or more. Three of those states: Minnesota, South Dakota and North Dakota accounts for about half of the increase. For corn planted acres to fit back in the 2010 box, corn will need to less extractive than other options. Corn and soybeans tend to hold a relatively stable price relationship. It appears only a more profitable wheat price with a "low" corn price will give a chance for the acres to fit. Freeport, IL
Posted by Freeport IL at 11:36AM CDT 06/27/13
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