September Deliveries

The USDA report..............Believe it, or not!....Regardless, we're not running out of corn,beans or, hard red wheat this year. But, Mother Nature can make us worry if we do not get an extended growing season and a few more weeks to mature the corn crop this year. The 6 to 10 day forecast of warmer and wetter than normal for the Heartland is conducive for crop development.

There appears to be no sense of urgency to own receipts of anything as we approach September deliveries. There still appears to be a little bit of a disconnect with Chicago wheat as quality has been an issue yet, with WU/CU above $1.00 and only a 20 cent discount with the vomitoxin unwheat stocks there's no urgency to swith to soft red wheat from corn in the feed ration. Stocks to use ratio projected at 39% is tighter than usual but we anticipate more soft red seedings this Fall to alleviate this tightness next year. Lots of uncertainty and disconnect with the Chicago contract. Smart guys appear to be standing aside and waiting to see how things play out. Field reports fromTexas are promising with early corn harvest. Reports are that producers are holding onto stocks.Where's the incentive to store?