To: mishedlo who wrote (25184 ) 3/9/2005 10:20:03 AM From: russwinter Read Replies (3) | Respond to Farmers out in the marginal dry corn belt, might as well but the tractor away this year, and work on fallowing.Message 21112775 While traders came in to the year thinking that planted acreage for upcoming season would be up 2-4 million acres from last year, the $1.37 rally in the soybean market and $55.00 crude oil prices could slow the expansion ideas. While high energy prices are supportive for ethanol usage, fertilizer costs are up sharply and diesel prices are up nearly 50% from last year. The supply/demand report for Thursday morning is expected to show another adjustment lower in old crop corn exports, which could add nearly 50 million bushels to the ending stocks forecast that was already up to 2.01 billion bushels last month as compared with 958 million bushels last year. Competition from China and Argentina has been more significant than expected. Funds were noted buyers of nearly 2000 contracts yesterday, as funds seem to be buying nearly any commodity due to inflationary fears and as a hedge against a collapsing US dollar. South Korea bought 110,000 tons of optional origin corn overnight.
