Market Matters Blog
Katie Micik DTN Markets Editor

Tuesday 08/05/14

Merchandising Makes Money Once Again
Second quarter financial results from two of the ABCDs of the grain industry show that merchandising profits are making a comeback.[Read Full Blog Post]
Posted at 9:54AM CDT 08/05/14 by Katie Micik | Post a Comment
Comments (3)
Questionable ethics of those counting huge crop that is not in bin. Huge amount of fresh water being pump in nebraska for no profit what a waste of a resource
Posted by andrew mohlman at 12:36PM CDT 08/05/14
Go back 10 or 20 years and look at corn exports and feed use. They are basically flat lines! In a really good year together they might get rid of say 7B bu.! Ethanol uses about 5B bu. annually (thank goodness)! Corn is going to get real cheap in places if it can't be moved or consumed if we end up with an extra 2-4B bu. carryout down the road a year or two from now! 300 bpa can't fix low prices nationwide under current consumption scenarios no matter how many seed companies tell you how much extra grain this world's population is going to need in the future! It's a train wreck coming without programs to limit production or additional ways to use-up the extra bushels! What say you, Katie?????
Posted by Roger Cooper at 8:01PM CDT 08/10/14
You make a very good point Roger. Corn certainly has an uphill battle in terms of demand. With China's pickiness about the MIR 162 (and likely the Duracade trait after harvest), strong export numbers will depend on demand from a lot of other countries. One thing that I've found interesting this year is the resurgence of Western Hemisphere demand. China's bid up the price of our sorghum crop, so Mexico imported more U.S. corn. The FTA with Colombia kicked in this year and they're in the running to be one of our top 3 buyers this year. That's still not enough, however, to chew through what China's left on the table + a likely 2 BB carryout. Maybe we're just going to have to wait for that cattle herd to recover? Let's hope the ethanol export economics stay a bright spot!
Posted by KATIE MICIK at 10:32AM CDT 08/11/14
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