IARN — The grain markets continued their strong rally on Friday even after a bearish export sales report on Thursday.
Bill Moore is a senior account executive and author of The AgMaster Report for Price Futures Group. He tells the Iowa Agribusiness Radio Network that Thursday’s export sales were anything but positive, however, the grain complex is paying no attention to it.
“You had some really abysmal exports, particularly corn,” said Moore. “My golly, only 243,000 tons for corn. That’s just nothing. I mean we’ve had two or three million over the last month or two months. That’s a pretty bad number, but it didn’t stop this market. The reason is that there just isn’t any supply out there. My producers don’t even have any corn left. There’s no corn to give. It’s going to be awhile before there’s more corn in there. That, coupled with five or six-year lows, exporters and end users are scrambling, and the basis is strong.”
Moore notes there are a number of factors right now that are creating a perfect recipe for a booming market.
“A lot of this move over the last few days is not because of some big export sale – export sales are actually bad – or some new weather issue, I mean yeah we have Brazil but that has been around for a while,” said Moore. “It’s just that the basis or the cash is 50 to 60 cents over the futures because the product is scarce. That’s another reason why this market is going up. China did get back into the market. They were on some kind of holiday, so that might have helped the market a little bit as well.”
Bill Moore can be reached by calling 630-947-5176, or you can email wmoore@pricegroup.com.
Story courtesy of the Iowa Agribusiness Radio Network
Photo by Price Futures Group
