Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Showing posts with label Corn News. Show all posts
Showing posts with label Corn News. Show all posts
Wednesday, March 10, 2010
Monday, August 3, 2009
Mutant Corn's Natural Defenses Enhanced
Genetically Enhanced Corn Natural Defenses
Using a plant gene from oregano which sends out a chemical call for help from the western corn rootworm (in reality a beetle), which studies show have proven to be effective deterrent when parasitic roundworms respond and start to kill the pests almost immediately.
Researchers say this could lead to solid corn harvests with less need for expensive pesticides.
How the research was conducted was regular corn was planted alongside the mutant corn and beetle larvae released among them. After that nematodes, or otherwise called roundworms were released as well, and results were the beetle larvae had been killed in three days.
As far as damage during that time, the genetically modified corn incurred far less damage than regular corn, and the numbers of beetle were 60 percent less on the mutant corn.
"As soon as the nematodes hit [the genetically modified plants]—within three days the larvae were killed," said study co-author Ted Turlings, a zoologist at the University of Neuchâtel in Switzerland.
It's postulated that the selective breeding used in the U.S. to produce faster-growing plants, along with pesticide use, may have slowly gnawed away at the natural defense mechanism in U.S. plants, in contrast to corn varieties used in Europe; although that's far from proven in any way.
Genetically Enhanced Corn Natural Defenses
Using a plant gene from oregano which sends out a chemical call for help from the western corn rootworm (in reality a beetle), which studies show have proven to be effective deterrent when parasitic roundworms respond and start to kill the pests almost immediately.
Researchers say this could lead to solid corn harvests with less need for expensive pesticides.
How the research was conducted was regular corn was planted alongside the mutant corn and beetle larvae released among them. After that nematodes, or otherwise called roundworms were released as well, and results were the beetle larvae had been killed in three days.
As far as damage during that time, the genetically modified corn incurred far less damage than regular corn, and the numbers of beetle were 60 percent less on the mutant corn.
"As soon as the nematodes hit [the genetically modified plants]—within three days the larvae were killed," said study co-author Ted Turlings, a zoologist at the University of Neuchâtel in Switzerland.
It's postulated that the selective breeding used in the U.S. to produce faster-growing plants, along with pesticide use, may have slowly gnawed away at the natural defense mechanism in U.S. plants, in contrast to corn varieties used in Europe; although that's far from proven in any way.
Genetically Enhanced Corn Natural Defenses
Tuesday, July 28, 2009
Corn Silking Behind 5-year Average
Corn Silking, doughing news
While corn silking improved by 24 points for the week, now standing 55 percent complete, which is equal to last year's silking, but far behind the 5-year corn silking average by 21 points.
The corn belt performed very well because conditions have remained ideal for corn silking, as 34 percent of the crop is at that stage in Minnesota and Iowa. Illinois corn silking came in at 27 percent.
Acroos the nation, 7 percent of corn acreage is beyond the dough stage, again, the same as last year at this time, but 10 points slower than the average.
North Carolina has the most advanced doughing stage, now standing at 80 percent complete, while Minnesota and Iowa haven't reached that stage yet, and neither has corn in other Great Lakes regions or Great Plains regions.
Appromimately 70 percent of all corn in the U.S. is rated as good to excellent in condition, a little down from last week, but still 4 points better than a year ago at this time.
Corn silking, doughing news
While corn silking improved by 24 points for the week, now standing 55 percent complete, which is equal to last year's silking, but far behind the 5-year corn silking average by 21 points.
The corn belt performed very well because conditions have remained ideal for corn silking, as 34 percent of the crop is at that stage in Minnesota and Iowa. Illinois corn silking came in at 27 percent.
Acroos the nation, 7 percent of corn acreage is beyond the dough stage, again, the same as last year at this time, but 10 points slower than the average.
North Carolina has the most advanced doughing stage, now standing at 80 percent complete, while Minnesota and Iowa haven't reached that stage yet, and neither has corn in other Great Lakes regions or Great Plains regions.
Appromimately 70 percent of all corn in the U.S. is rated as good to excellent in condition, a little down from last week, but still 4 points better than a year ago at this time.
Corn silking, doughing news
Friday, July 17, 2009
Cash for Corn Cobs?
Cash for corn cobs a stupid idea
Using tax payer money for subsidizing farmers even more than the outrageous levels they're already being subsidized at is outrageous and criminal.
We don't need any more subsidies of corn, as the artificial market created through the nonsensical ethanol policy are detrimental and misguided, as wheat production suffers, and the poor around the world as well. That won't stop the outrage until food riots start again though, as prices surge above market levels in the socialist induced artificial market for corn and now corn cobs.
Cobs, the refuse left behind after harvest, are now plowed back into fields. But companies from California and South Dakota plan to start changing that by building two plants in Iowa, one to turn the material into ethanol and another to produce fertilizer.
Boyer already sells most of the corn from his farm to a traditional ethanol plant. Most ethanol in the U.S. is made from corn kernels.
But a $200 million plant being built by Sioux Falls, S.D.-based Poet Energy will make cellulosic ethanol, which comes from plant material such as cobs, wood chips and switchgrass. About two dozen cellulosic ethanol projects are being developed or built around the country, according to the Renewable Fuels Association.
The projects vary by region, with companies using whatever local crop is available. Louisiana and Florida companies, for instance, are using sugar cane, while one based in Oregon plans to convert poplar tress and wood chips into ethanol.
In Iowa, it's corn, and a switch from regular to cellulosic could mean more kernels are available for human food and livestock feed.
The push for new ways to produce cellulosic ethanol comes as many ethanol makers are struggling to turn a profit. They've had to drop prices to remain competitive as gas prices have fallen, but the cost of corn used to make ethanol has remained relatively high, said David Swenson, a researcher at Iowa State University.
Some of the largest producers have declared bankruptcy or been sold.
Poet spokesman Nathan Schock said the company hasn't yet figured out how much it will pay farmers, but it could be $30 to $60 per ton for corn stover, which includes cobs and some stalk. An average acre in Iowa yields about 1.5 tons of corn stover.
The company's payments to farmers could be supplemented by the federal government through the Biomass Crop Assistance Program.
Poet's plant in Emmetsburg, about 120 miles northwest of Des Moines, is expected to produce about 25 million gallons of ethanol per year when it opens in 2011. It could generate as much as $10 million per year in extra income for farmers.
Meanwhile, San Francisco-based SynGest, Inc., plans to build an $80 million facility in Menlo, about 40 miles west of Des Moines, that will be the first to make ammonia fertilizer from corn cobs.
The plant, expected to be completed by fall 2011, will process 130,000 tons of cobs per year into 50,000 tons of fertilizer, or enough for 100,000 acres of corn, SynGest CEO Jack Oswald said. Farmers would get about $50 per ton of cobs.
The company plans to market ammonia fertilizer to nearby farms as alternative to nitrogen fertilizer, which is made from oil. More than half the nation's supply of nitrogen fertilizer is imported, which drives up the price to farmers, Oswald said.
Poet expects $100 million in federal and state aid to build its plant, while SynGest has applied for $40 million in federal aid and additional state help.
Farmers said they'd like to trade their trash for cash, but most lack equipment to easily scoop up cobs. Prototypes for such machines are being built, but they could cost more than the cobs bring in. Boyer said a lot of questions remain.
Clark Bredahl, who raises corn, soybeans and cattle 320 acres near Greenfield, also said he'd need to figure out whether selling his cobs made economic sense.
This farmer is right. This is a bunch of ridiculous nonsense initiated by those attempting to fleece more taxpayers of their hard earned money in order to shore up a very stupid socialist corn and energy fiasco.
Cash for corn cobs a stupid idea
Using tax payer money for subsidizing farmers even more than the outrageous levels they're already being subsidized at is outrageous and criminal.
We don't need any more subsidies of corn, as the artificial market created through the nonsensical ethanol policy are detrimental and misguided, as wheat production suffers, and the poor around the world as well. That won't stop the outrage until food riots start again though, as prices surge above market levels in the socialist induced artificial market for corn and now corn cobs.
Cobs, the refuse left behind after harvest, are now plowed back into fields. But companies from California and South Dakota plan to start changing that by building two plants in Iowa, one to turn the material into ethanol and another to produce fertilizer.
Boyer already sells most of the corn from his farm to a traditional ethanol plant. Most ethanol in the U.S. is made from corn kernels.
But a $200 million plant being built by Sioux Falls, S.D.-based Poet Energy will make cellulosic ethanol, which comes from plant material such as cobs, wood chips and switchgrass. About two dozen cellulosic ethanol projects are being developed or built around the country, according to the Renewable Fuels Association.
The projects vary by region, with companies using whatever local crop is available. Louisiana and Florida companies, for instance, are using sugar cane, while one based in Oregon plans to convert poplar tress and wood chips into ethanol.
In Iowa, it's corn, and a switch from regular to cellulosic could mean more kernels are available for human food and livestock feed.
The push for new ways to produce cellulosic ethanol comes as many ethanol makers are struggling to turn a profit. They've had to drop prices to remain competitive as gas prices have fallen, but the cost of corn used to make ethanol has remained relatively high, said David Swenson, a researcher at Iowa State University.
Some of the largest producers have declared bankruptcy or been sold.
Poet spokesman Nathan Schock said the company hasn't yet figured out how much it will pay farmers, but it could be $30 to $60 per ton for corn stover, which includes cobs and some stalk. An average acre in Iowa yields about 1.5 tons of corn stover.
The company's payments to farmers could be supplemented by the federal government through the Biomass Crop Assistance Program.
Poet's plant in Emmetsburg, about 120 miles northwest of Des Moines, is expected to produce about 25 million gallons of ethanol per year when it opens in 2011. It could generate as much as $10 million per year in extra income for farmers.
Meanwhile, San Francisco-based SynGest, Inc., plans to build an $80 million facility in Menlo, about 40 miles west of Des Moines, that will be the first to make ammonia fertilizer from corn cobs.
The plant, expected to be completed by fall 2011, will process 130,000 tons of cobs per year into 50,000 tons of fertilizer, or enough for 100,000 acres of corn, SynGest CEO Jack Oswald said. Farmers would get about $50 per ton of cobs.
The company plans to market ammonia fertilizer to nearby farms as alternative to nitrogen fertilizer, which is made from oil. More than half the nation's supply of nitrogen fertilizer is imported, which drives up the price to farmers, Oswald said.
Poet expects $100 million in federal and state aid to build its plant, while SynGest has applied for $40 million in federal aid and additional state help.
Farmers said they'd like to trade their trash for cash, but most lack equipment to easily scoop up cobs. Prototypes for such machines are being built, but they could cost more than the cobs bring in. Boyer said a lot of questions remain.
Clark Bredahl, who raises corn, soybeans and cattle 320 acres near Greenfield, also said he'd need to figure out whether selling his cobs made economic sense.
This farmer is right. This is a bunch of ridiculous nonsense initiated by those attempting to fleece more taxpayers of their hard earned money in order to shore up a very stupid socialist corn and energy fiasco.
Cash for corn cobs a stupid idea
Wednesday, July 8, 2009
Slow Start to Kansas Corn
Kansas Corn Crop
The Kansas corn crop has been doing pretty good so far this year even though there was an very late planting, but its late start has made the crop especially vulnerable to damage.
If everything goes right, Kansas farmers plant their corn by the first week in April. But rain kept farmers out of fields at the usual planting time, so a lot of of the state's corn was planted in late May and early June.
What that means is the crop will be pollinating during the hot, dry Kansas summer months. Another potential problem is an early freeze before the corn is ready for harvest could be devastating.
This week's crop condition report showed 68 percent of the corn in good to excellent condition, with 25 percent rated as fair. Only 7 percent of the crop got a poor to very poor rating.
Kansas farmers put 3.8 million acres into corn this season, compared to 3.85 million acres a year earlier.
Acroos the nation, the corn acreage of 87 million acres was up 1 percent from 2008. It was the second largest planted corn acreage since 1946, behind 2007, which set the record.
But some analysts remain nervous at the crop's late planting dates in major growing regions.
When the Agriculture Department came out with its acreage report last week the numbers of corn acres were higher than expected, said Mike Woolverton, grain marketing economist at Kansas State University. The market had anticipated a reduction in acreage from a year ago.
"The acres are there," he said. "But - and here's the kicker - and that is that the corn was planted late. Very late, some of it, and it may not develop to full maturity before frost. So we may end up with a short corn crop this year."
Kansas Corn Crop
The Kansas corn crop has been doing pretty good so far this year even though there was an very late planting, but its late start has made the crop especially vulnerable to damage.
If everything goes right, Kansas farmers plant their corn by the first week in April. But rain kept farmers out of fields at the usual planting time, so a lot of of the state's corn was planted in late May and early June.
What that means is the crop will be pollinating during the hot, dry Kansas summer months. Another potential problem is an early freeze before the corn is ready for harvest could be devastating.
This week's crop condition report showed 68 percent of the corn in good to excellent condition, with 25 percent rated as fair. Only 7 percent of the crop got a poor to very poor rating.
Kansas farmers put 3.8 million acres into corn this season, compared to 3.85 million acres a year earlier.
Acroos the nation, the corn acreage of 87 million acres was up 1 percent from 2008. It was the second largest planted corn acreage since 1946, behind 2007, which set the record.
But some analysts remain nervous at the crop's late planting dates in major growing regions.
When the Agriculture Department came out with its acreage report last week the numbers of corn acres were higher than expected, said Mike Woolverton, grain marketing economist at Kansas State University. The market had anticipated a reduction in acreage from a year ago.
"The acres are there," he said. "But - and here's the kicker - and that is that the corn was planted late. Very late, some of it, and it may not develop to full maturity before frost. So we may end up with a short corn crop this year."
Kansas Corn Crop
Friday, February 6, 2009
Corn Futures in India Drop
Few buyers show up to by in the Indian corn spot market, driving corn futures in India down.
India corn futures ended lower on Friday on sudden absence of buying by local feedmakers and exporters in the spot market, analysts said.
"Both domestic feedmakers and export enquiries were not seen in the market today," said Rahimtullah, a trader in Nizamabad, a major trading hub.
Prices fell by 4 rupees to 820 rupees per 100 kg in Nizamabad spot market.
Prices showed some positive trend in the past one month as demand from local poultry feed-makers started to pick up recently after being tamped down in recent months by a bird flu outbreak.
Government agencies, another major group of buyers in the past one month, almost stopped buying in the last 3-4 days, a trader said.
February futures NMZG9 on the National Commodity and Derivatives Exchange ended at 848 rupees per 100 kg, down 1.39 percent.
India corn futures should rise going forward though, as government agencies and other big players come back to the table.
India corn futures ended lower on Friday on sudden absence of buying by local feedmakers and exporters in the spot market, analysts said.
"Both domestic feedmakers and export enquiries were not seen in the market today," said Rahimtullah, a trader in Nizamabad, a major trading hub.
Prices fell by 4 rupees to 820 rupees per 100 kg in Nizamabad spot market.
Prices showed some positive trend in the past one month as demand from local poultry feed-makers started to pick up recently after being tamped down in recent months by a bird flu outbreak.
Government agencies, another major group of buyers in the past one month, almost stopped buying in the last 3-4 days, a trader said.
February futures NMZG9 on the National Commodity and Derivatives Exchange ended at 848 rupees per 100 kg, down 1.39 percent.
India corn futures should rise going forward though, as government agencies and other big players come back to the table.
Monday, January 12, 2009
Corn Plunges on Department of Agriculture's Projection of Larger Supplies
Corn fell to the lowest level allowd by the Chicago Board of Trade after the u.S Department of Agriculture said supply will be larger than originally projected in December.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Monday, December 22, 2008
DJ CBOT Corn Review: Up Slightly Amid Pre-Holiday Positioning
CHICAGO, Dec 22, 2008 (Dow Jones Commodities News via Comtex) --
By Ian Berry Of DOW JONES NEWSWIRES
Chicago Board of Trade corn futures inched slightly higher Monday in light, pre-holiday trade, with weak demand limiting any bullish sentiment, analysts said.
March corn ended up 1 cent to $3.81 3/4, May corn was up 1 cent to $34.92 and July corn settled up 1 1/2 cents to $4.02 1/2 per bushel.
Prices had been a couple cents lower for most of the day before mounting a mild rally late. The market tends to gain in the days leading up to Christmas and the day after, and some traders "will try to pick up on some of these statistical tendencies to try and pick up a few pennies here and there," said Arlan Suderman, analyst for Farm Futures.
Some analysts said China's reported purchase of 20 million metric tons of corn was likely supportive, although not a clear factor in Monday's trade. Analysts questioned its long-term impact.
"It seems like the higher Chinese market is what gave it its support on the open," said Chad Henderson, analyst for Prime Ag Consultants. "But when the dust settles on it all, it just looks like they're trying to support their domestic prices. It does nothing to alleviate the glut of grain on the world market."
After climbing $1 from its recent low, lingering weak demand has kept corn from climbing any higher, analysts added. Demand in exports, ethanol and feed is all weak, they said.
You have the corn farmers saying 'man, I don't want to give my corn away at $3.50 cash,' and you've got the hog farmers saying 'look, I'm losing money on $3.50 corn,'" Henderson said.
Volume is expected to be light all week because of the Christmas holiday.
The trade continues to eye weather in South America, which some analysts say is supportive because of dry crops. Others say the region appears to be getting enough rain.
CBOT oats futures ended flat. March oats closed at $2.19 per bushel and May oats closed at $2.28.
Ethanol futures were lower. January ethanol ended down $0.011 to $1.559 per gallon and March ethanol ended down $0.010 to $1.570.
-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com
(END) Dow Jones Newswires
12-22-08 1545ET
Copyright (c) 2008 Dow Jones & Company, Inc.
By Ian Berry Of DOW JONES NEWSWIRES
Chicago Board of Trade corn futures inched slightly higher Monday in light, pre-holiday trade, with weak demand limiting any bullish sentiment, analysts said.
March corn ended up 1 cent to $3.81 3/4, May corn was up 1 cent to $34.92 and July corn settled up 1 1/2 cents to $4.02 1/2 per bushel.
Prices had been a couple cents lower for most of the day before mounting a mild rally late. The market tends to gain in the days leading up to Christmas and the day after, and some traders "will try to pick up on some of these statistical tendencies to try and pick up a few pennies here and there," said Arlan Suderman, analyst for Farm Futures.
Some analysts said China's reported purchase of 20 million metric tons of corn was likely supportive, although not a clear factor in Monday's trade. Analysts questioned its long-term impact.
"It seems like the higher Chinese market is what gave it its support on the open," said Chad Henderson, analyst for Prime Ag Consultants. "But when the dust settles on it all, it just looks like they're trying to support their domestic prices. It does nothing to alleviate the glut of grain on the world market."
After climbing $1 from its recent low, lingering weak demand has kept corn from climbing any higher, analysts added. Demand in exports, ethanol and feed is all weak, they said.
You have the corn farmers saying 'man, I don't want to give my corn away at $3.50 cash,' and you've got the hog farmers saying 'look, I'm losing money on $3.50 corn,'" Henderson said.
Volume is expected to be light all week because of the Christmas holiday.
The trade continues to eye weather in South America, which some analysts say is supportive because of dry crops. Others say the region appears to be getting enough rain.
CBOT oats futures ended flat. March oats closed at $2.19 per bushel and May oats closed at $2.28.
Ethanol futures were lower. January ethanol ended down $0.011 to $1.559 per gallon and March ethanol ended down $0.010 to $1.570.
-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com
(END) Dow Jones Newswires
12-22-08 1545ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Thursday, December 4, 2008
South Korea Replacing Some Corn Imports with other Grains
South Korea, which is the third-largest importer of corn, said it'll probably cut corn imports and replace them with less expensive grains like wheat.
As a result, this year's corn imports from the U.S. could fall by up to 1 million tons from last year's levels.
"Overall corn imports for feed use in 2009 will be similar to this year's level at best and are more likely to fall below the level as feed makers switch to cheaper wheat products," Min Byong-ryol, who represents South Korea for the U.S. Grains Council.
In 2007, South Korea imported 6.7 million tons of corn for feed over the first 10 months of the year. So far in 2008 they've acquired 6.5 million tons of feed corn in the first 10 months.
Min added feed corn purchases should be around 8 million tons overall, with the U.S. accounting for 7.5 million by the end of the year.
Corn used for food will also drop significantly, as less expensive sweeteners like sugar are used by food processors. Corn used for food is under 20 percent of South Korea's total corn imports.
So far this year corn imports for food are down by 19 percent over the first 10 months of the year, coming in at 1.25 million tons.
With fertilizer costs more than doubling from four years ago, it's projected that next year corn acreage planting should drop from 94 million to 86 million. Much of that will be planted in soybeans, which require far less fertilizer input than corn.
As a result, this year's corn imports from the U.S. could fall by up to 1 million tons from last year's levels.
"Overall corn imports for feed use in 2009 will be similar to this year's level at best and are more likely to fall below the level as feed makers switch to cheaper wheat products," Min Byong-ryol, who represents South Korea for the U.S. Grains Council.
In 2007, South Korea imported 6.7 million tons of corn for feed over the first 10 months of the year. So far in 2008 they've acquired 6.5 million tons of feed corn in the first 10 months.
Min added feed corn purchases should be around 8 million tons overall, with the U.S. accounting for 7.5 million by the end of the year.
Corn used for food will also drop significantly, as less expensive sweeteners like sugar are used by food processors. Corn used for food is under 20 percent of South Korea's total corn imports.
So far this year corn imports for food are down by 19 percent over the first 10 months of the year, coming in at 1.25 million tons.
With fertilizer costs more than doubling from four years ago, it's projected that next year corn acreage planting should drop from 94 million to 86 million. Much of that will be planted in soybeans, which require far less fertilizer input than corn.
Friday, November 21, 2008
VeraSun Energy Requests Permission to Void Corn Contracts with 10-day Notice
Farmers are up in arms over the request by VeraSun Energy for a Delaware judge to give them permission to void corn contracts with a notice of 10 days.
The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.
Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.
I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.
With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.
On the 2nd of December the request by VeraSun will be reviewed at a hearing.
The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.
For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.
The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.
Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.
I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.
With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.
On the 2nd of December the request by VeraSun will be reviewed at a hearing.
The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.
For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.
Monday, November 10, 2008
Bunge Ltd Ends Bid to Acquire Corn Products International
When the board of Corn Products International (CPO) recently announced it could no longer support the acquisition bid from Bunge Ltd (BG) for the company, the deal had little chance of going forward, and Bunge confirmed that today, announcing it had withdrawn its bid.
The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.
Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.
Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.
The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.
Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.
Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.
Tuesday, October 14, 2008
Corn Futures Increase from News on Initial Government Injection of Capital into Banks
The emotional boost given by the announced plan of the U.S. government to take $250 billion of the $700 billion bailout and inject it into "healthy" U.S. banks, has caused many commodities to rise over the last couple days, but that will be short lived.
For corn, it partook in the overall boost by increasing by 6.75 cents for December delivery to reach $4.18 a bushel on the Chicago Board of Trade. Earlier in the day it was higher at $4.29 a bushel.
So far this year corn maturity has dropped significantly from last year, as a recent report from the USDA says, where as of October 5 it was only as 73 percent maturity, in contrast to last year during the same period where it was at 95 percent. Later today the U.S. Department of Agriculture will release their weekly crop report.
For corn, it partook in the overall boost by increasing by 6.75 cents for December delivery to reach $4.18 a bushel on the Chicago Board of Trade. Earlier in the day it was higher at $4.29 a bushel.
So far this year corn maturity has dropped significantly from last year, as a recent report from the USDA says, where as of October 5 it was only as 73 percent maturity, in contrast to last year during the same period where it was at 95 percent. Later today the U.S. Department of Agriculture will release their weekly crop report.
Monday, October 6, 2008
Corn Drops Maximum Allowed on Spread of Economic Fears
Corn dropped by the maximum allowed on the Chicago Board of Trade (CBOT) today as the spread of economic fears and realities is starting to hit Europe hard, and China and India are showing signs of slowing demand as well.
Growing concern on a global scale is causing almost all commodities to fall in price as demand across the board decreases. The only exception to positive growth for commodities for today was with Gold.
Much of the problem continues to be access to capital. It's possible to continue to have a negative impact even as prices drop because of inability to acquire the needed operational funds.
Corn for December delivery fell as low as the maximum allowed, to $4.24 a bushel earlier in the day.
The golden nugget continues its poor performance, following up its horrible week that just ended where it crashed by 16 percent, the most since June 1973.
It's far down from its $7.9925 a bushel it reached on June 30 of 2008, a 47 percent plunge.
Growing concern on a global scale is causing almost all commodities to fall in price as demand across the board decreases. The only exception to positive growth for commodities for today was with Gold.
Much of the problem continues to be access to capital. It's possible to continue to have a negative impact even as prices drop because of inability to acquire the needed operational funds.
Corn for December delivery fell as low as the maximum allowed, to $4.24 a bushel earlier in the day.
The golden nugget continues its poor performance, following up its horrible week that just ended where it crashed by 16 percent, the most since June 1973.
It's far down from its $7.9925 a bushel it reached on June 30 of 2008, a 47 percent plunge.
Wednesday, October 1, 2008
Corn in Slight Rebound after Plunging Yesterday
Corn futures are enjoying a slight rebound today after falling by almost 5 percent in Tuesday trading.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
Thursday, September 25, 2008
Corn Futures Drop as Market Waits on Bailout Plan
Uncertainty in the market and overall economy have investors on the sidelines in a number of categories, and concerning corn futures it's no different.
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
Wednesday, September 3, 2008
Bunge Ltd. Clears Regulatory Hurdle for Corn Products Deal
The Hart-Scott-Rodino Antitrust Improvements Act has been successfully fulfilled by Bunge Ltd. in its quest to acquire Corn Products International. It involved satisfying a required regulatory waiting period.
While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.
Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.
Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.
Corn Products will continue operating under its existing brand name.
While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.
Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.
Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.
Corn Products will continue operating under its existing brand name.
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