Crush spread is negative so once again Blooperberg fails as it is the insane RINs creating a 'profit'
Corn supplies in the U.S., the biggest grower, are shrinking at the fastest pace in almost four decades as improving demand from ethanol refiners drains reserves already diminished by drought.
Stockpiles probably fell 38 percent in three months to 4.995 billion bushels (126.9 million metric tons) by March 1, the biggest drop since 1975, according to the average of 31 analyst estimates compiled by Bloomberg. AgResource Co. in Chicago and Northstar Commodity Investments Inc. in Minneapolis expect prices to jump 13 percent to $8.25 a bushel before supply rebounds with a record harvest in September.
After idling refining capacity when corn reached a record in August, ethanol plants expanded output since January as falling grain costs and rising fuel prices drove profit margins to a nine-month high. Demand from the industry, which uses two of every five bushels in the U.S., provides the “strongest upside risk” for corn, Goldman Sachs Group Inc. said March 11. That’s boosting feed costs for meat and dairy producers even as global food prices extend their longest slump since 2009.
“The roof is going to blow off the corn market if we don’t slow production,” said Mark Schultz, the chief analyst for Northstar, a cash-grain trader and broker. “Corn prices could rise to $8.30 to finally shut off demand and prevent regional shortages before the harvest.”
Dairy farmers in California, the biggest milk-producing state, cut back to about 5 pounds of corn a day per cow from 15 pounds after local cash prices reached $8.80, according to Joel Karlin, the commodity sales coordinator for Western Milling LLC in Goshen. They switched to cheaper alternative feeds including hay and byproducts from fruit and vegetable processing.
Yea think what Obama/Progressive would do if they had a 'market' carbon exchange. Time to end this and right now.