Standard Grain President Joe Vaclavik says the delayed harvest should impact the grain markets at some point, but poor demand will offset any production loss. “The only thing I know for sure about the corn market is the poor demand, exports are running at half of last year’s pace. We have lots of negativity with ethanol. The biofuel issue with the EPA is problematic.” Vaclavik says what is unusual is cash basis has remained unusually strong. “That leads to broader questions. Why is the cash corn market strong? Why are futures better than they’ve been at mid-harvest compared to previous years? There’s still something going on, but I’m not sure if it’s an over-stated old crop or this year’s crop won’t be there.”
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