April 9th Thursday USDA report
By the numbers:
Corn usage Ethanol 40% Feed and Residual 37% Export 13%
Even IF they increase Feed it can’t off set the Ethanol supply.
Markets are in down trends of course and there needs to be a fundamental change…China?? OPEC and Russia and even the US all can cut back million of barrels of oil per day but it still will take time to use the ethanol on hand and that problem won’t go away until we start to open our country again.
Now acreage for both Corn and Beans. IMHO we shall see 1mil-1.5mil corn switch to beans. BUT spring ins. number of 388 could keep the corn number higher than we think also.Plus some producers are in the camp the government will need to make another MFP payment for 2020 crop.
May Corn and May Wheat lows of 328 and 538.25 is a must on closing basis to hold that line.
Dec. corn mho could see 342.50 level right now and then must hold that line. Reward bounces if need be.
This is the year of break even or survival / marketing plans. Don’t use HOPE and China. Covid-19 has put us in a different World.
Livestock markets / futures are out of wack with cash. Saw some facilities reducing production cuz of Covid-19
China is seeing some good bargain prices but seem like there in no rush since it looks like a buyers market.
Seems like we are in the movie Ground Hog Day every day.
Be safe and God bless you and your family members