Friday, November 30, 2012

Corn Prices Higher, Then Lower in 2013

Societe Generale forecasts corn prices to average $7.38 per bushel during the first quarter of the year before falling to an average of $6.57 during the fourth quarter, according to its 2013 outlook. The price forecast is the quarterly average of the nearby futures contract.

Rabobank's forecast is more favorable to farmers in the first three months of 2013 with corn prices estimated to average $7.90 per bushel, factoring in a rally in January following the USDA Grain Stocks report.
However, Rabobank expects corn prices to fall 24% over the course of the year to average $6 per bushel in the fourth quarter. The key factor in that price decline, the Rabobank report states, is the corn production estimate of 14.1 billion bushel. That figures in a 0.7-million-acre increase in corn plantings to 97.6 million acres, with increases coming in the Northern Plains, displacing soybeans and wheat, and the Delta, displacing cotton.

"Our base-case scenario shows stocks-to-use rising to 13.6%, although we acknowledge significant risks to our return-to-trend yield forecast," the report stated, noting current drought conditions. Rabobank used a trend yield of 157 bpa in its forecast.

"We see corn demand and prices pressured on reduced usage for ethanol, further reductions in the U.S. livestock and poultry sectors, and less exports," according to Societe Generale's outlook. "However, prices are vulnerable to adequate South American production. If production there disappoints, prices will likely see upside risks to our current forecasts."

As seen on www.DTN.com

Tuesday, November 27, 2012

Powerball Winning Numbers

Tomorrow's Winning Powerball Numbers Are: 8, 17, 22, 29, 44 Powerball: 30 -- The Onion (@TheOnion)

Weekly Update- Scott Hingtgen

E.C. Iowa: Harvest is done. Some fall field work is being done, but that may slow down or come to an end around here as temps dropped to 11-15 F overnight. Fertilizer has been applied, as well as a fair amount of NH3 in the county. Supposed to warm up into the 40's-50's for daytime highs, but overnight temps are supposed to be in the low 20's. Now it's bookwork time to get ready for the taxman (President Obama).