Happy Valentine's Day! Seems like a good opportunity to thank all of our customers for the business and support throughout the year. We wouldn't be here if it weren't for you guys...will you be our valentine?
Wheat prices seem to be holding pretty steady right now. Today's rail price to Portland is $8.75 and up to $8.90 for May. July-September is still at $8.65-$8.70. New crop 2012 ticked back up over the weekend to $7.94 wheat looks to be profitable for a while yet.
Here's Dan's report for today:
It’s a fairly quiet news day this morning. $$ has been gaining strength and we are seeing some pull back from corn with higher exchange rates. Wheat futures are up strong, particularly in the old crop slots. We did have some nice sales registered over the weekend: Iraq booked 7.2 myn US wheat and 5.5 myn Aussie wheat. China swung a big stick again, buying up 11.8 – to 19.7 myn bu (300m to 500m mt) of Aussie feed wheat. Aussie feed wheat values are about $30/ ton under US corn values, so not bad prices for ‘feed grains’. There were somewhat conflicting reports that frost had damaged up to 20% of the young Mexican corn crop. Perhaps, but the crop is so small that it will most likely just be replanted. The Chinese drought is now registered as the ‘worst in 60 years’. Is it me, or are we seeing an awful lot of these ‘once in a lifetime’ events…and they are coming in bunches?Ethanol inventories hit 7 month highs, with stocks up 22% since last October, and up 16% since the beginning of the year. EIA reported that gas usage was down sharply with a 4 myn bbl build in inventory (mostly on the east coast). Most likely a temporary situation following the massive snowstorms. Syngenta announced that they have go-ahead approval to sell a GMO ‘Amalyze’ corn that is designed specifically for the ethanol industry. On a 100 myn gallon a year plant, savings are estimated to be .08-.10/ gal, plus higher conversion rates. Savings come in reduced enzyme usage, water, and gas usage. They claim that there is no yield drag, and the DDG’s have been approved for animal usage. The main concern is that this corn (it all looks the same) will end up in the food chain eventually and would greatly affect end product quality because of its specific traits. The world is becoming ever more complex….wouldn’t it be great if GMO corn was say RED, NON GMO corn was Yellow, and ethanol corn was say GREEN? Looks like the cost to test, segregate and IP will certainly go UP.
***Didja Know: As of 2006 there were still 18 bi-planes still contracted to deliver US mail, 12 of them were in Alaska. Biggest selling book ever? Probably not a big surprise…the Bible. About 50 copies are sold every minute…It is estimated that there have been over 6 byn copies sold. If all the water were drained from an average 160 pound man, he would weigh about 64 pounds.