According to Advance Trading risk management advisor Tommy Grisafi, USDA planting intentions are typically accurate to the final acreage count. “Farmers love planting corn. They will plant corn until June 25 if they have to in order to get the crop in. Unfortunately, we may be going one more year with mailbox farming.” Grain prices could continue to struggle going into summer from the combination of less ethanol demand and low oil prices. “Ethanol plants across America are shutting down. Not only have the futures dropped, but basis has widened,” explains Grisafi. “Market analysts, like myself, didn’t have the coronavirus or a Saudi Arabia-Russia oil spat factored in, two things working against the markets.”
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