Grain prices will need to climb high enough to ration demand. “The $12 number in the soybeans is being talked about a lot right now,” said Jacob Burks, market analyst, Kluis Commodities. “For the corn, $4.50 is being discussed. The USDA changes mean demand needs to be rationed. We will overshoot it at some point and have a big pull back, but how far that is, who knows?” The changes USDA made in demand and carryout are big. “It’s a lot of numbers to dissect. The November report is rarely this exciting, but the yield changes surprised us on the supply side. No longer is it just about demand, but it’s also looking at some kind of supply issue.”
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