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Weekly Market Comments: 12/01/10
China Still Dominates Forecasts
 | | Click for Full WSJ Article |
Yesterday we finished the first monthly price decline for corn since June. We also saw the Dec-Mar corn spread go into the December delivery month at
78% of full carry (15¢). After the October USDA crop report, the spread traded at 48% of full carry (9¢). The bullishness of the USDA report had many thinking of the prospect of the spread trading at even money. The obvious thought (now) is that procurement cost/risk management may be blessed with a few weeks of reduced volatility for the balance of 2010.
Looking back over the past month's price action, we went through every trading day reviewing China and its currency relationships/impact. Somewhere in 2011, traditional, domestic (fundamental ag) issues like "acres and weather" will return to the spotlight, right?
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Ethanol Subsidy Extension Stalls
This Monday our great expectations for the extension of the ethanol subsidy waned a bit after listening to Energy Secretary, Steve Chu, at a National Press Club luncheon state, "Ethanol is not an ideal transportation fuel".
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A Personal Note
Early Ethanol Advocate: Jack Dinsdale
 | | Roy and Jack Dinsdale |
On Thanksgiving, Nebraska lost a community leader and a shining advocate for rural development with the passing of Jack Dinsdale. I lived 7 years in Merrick county (Palmer/Central City area) and witnessed the manner in which brothers Jack and Roy, suprisingly "regular" guys when you think of all they've accomplished, embraced husbandry. I wish I had a few of those Wall Street Journal snippets over the years that mentioned the "Palmer bankers" that acquired small town banks and assimilated them into Pinnacle Bank (PPBN). Learn More: Pinnacle Ranked Top 100 Ag Banks
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