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USDA says Rain Does Make Grain

This morning's limit down reaction to the USDA announcement that they were raising the corn yield to 168.8 BPA should not be a complete surprise if you can look beyond the focus of central Illinois publicity of losing 20 bushels of yield. Many farmers tributary to the Mississippi River in prime corn country have spoken and received press about how difficult it is to expect that their drowned out acres are going to yield significant bushels.  However, the past couple of weeks driving thru dryland areas of Nebraska and Kansas paint a completely different picture. You can't tell where the irrigated ends and the dryland begins.
 
Taken with the commodity export impact of Monday's yuan devalue announcement, I am not sure I want to stick with our February comment that the March corn futures month will end the year above $4 a bushel?  It is not in the bin, yet. 
 
Projections of 1.7 billion bushel carryout for next year should put real carrying charges in corn futures.
  

 The CFO Systems Corn Crush
 
The CFO Systems Corn Crush  is now $0.56/gallon of ethanol on August 12, 2015.
*Using nearby CBOT corn futures, CBOT ethanol futures, USDA corn oil prices and ethanol industry conversion standards.




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