Feb 19, 2010
Allendale, Inc has and will attend many producer and end user meetings and a common question which is asked is what to do about old crop corn marketings. Be very aware there are many factors which Allendale Inc watches with regards to grain marketing such as basis, futures and spreads to name just a few.
We are completely aware of quarterly grain stocks of 10.934 billion bushels and how the first quarter use was 26%. This compares to a range of 26% to 29% and five year ave of 27.2%. At 10.934 billion bushels of on and off farm stocks it represents the largest quarterly stocks verses the old record of 10.306 billion bushels in the 1982-83 marketing year. Allendale Inc is well aware of how 2nd, 3rd and 4th quarter use is less each quarter with 1st quarter use the strongest.
The industry is well aware of the large quarterly corn stocks as well as pockets of light and heavy test weight corn. Is the elevator paying you above 56 pound test weight corn? But the elevator is not afraid to dock you as a producer for sub 56 pound test weight. Allendale Inc ask you, whether basis, GMP, HTA or various other forward contracts, why are you utilizing the country elevator?
In our travels this winter it is encouraging to hear how aware you all are how as futures rise, basis widens-weakens. We are at a cross roads which tells the producer to sell the cash and IF you so choose to re own via futures and or options.
Allendale Inc is well aware of how wheat, sorghum and rice as starches compete with USA corn, and especially the wheat supply is recognized as a negative to corn. Ask yourself, what is keeping you from selling 2009 cash corn other than those of you hedged, earning money based on the spreads.
We have many risk management tools for you to choose from and ask you become involved with marketing 2009 and 2010 corn.
Allendale Inc has many Midwest meetings planned all the way through mid-March and would appreciate meeting you, visit the web site for a complete list. Allendale Inc also ask you to check out the link below as we conduct our annual acreage survey.
We welcome your questions and comments.........Joe Victor
Allendale Inc welcomes any questions you may have by calling 800-551-4626 or
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