With drought everywhere and Egypt coming to town to buy, you would think Chicago would get dressed for the dance. Instead at this morning’s close March wheat futures finished off 4 points to extend the losing streak. The PNW basis is still strong but we need Chicago to cooperate more so we can get back to at least where we were just a week ago on local prices. I believe tightness of inventories still lies ahead.
What lies ahead for the Midwest is not looking good . . . .at this point. We may yet see the Mississippi River closed due to low water. Of the 12 recognized top corn states, Nebraska is by far the driest. From July 14 to Dec. 1, normal rainfall is 11”. So far during the same time frame they have gotten 3.89” They grow wheat there too. Even Minnesota is dry with the normal rainfall from July-December at 12.94”, and that state only receiving 6.46”. Can we lend them some rain? At the Portland Airport (where it is a bit drier than other parts of the Valley for sure), we are 13 inches above normal for the total year. Of important corn states, only Illinois, Indiana, and Ohio are about normal for rainfall July-December. Look for a bounce in our pricing…….
Mike Wilhoit
Wilco Key Account Representative
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