Weekly Winners & Losers
Ag’s start to 2024:
Corn saw new contract lows to close out an abysmal first week of the new year.
No one wants the reminder but unfortunately, this is our reality. US corn ending stocks remain above 2.1 billion bushels - a 14.7% stocks/use ratio, up from 9.9% last year.
That ~5% increase year-on-year is the difference between $4.50 corn and the $6.50 corn we grew accustomed to in recent years.
And unfortunately, even after a sizable whack to corn acres this spring, it looks like we will see that near-15% stocks/use ratio climb even higher in 2024 barring a major weather event.
Producers are undersold and have that deer in the headlights look right now as corn continues to grind into new lows.
What I see as a producers’s biggest challenge in 2024 will be having the courage to actually make a sale.
Keep reading with a 7-day free trial
Subscribe to No Bull to keep reading this post and get 7 days of free access to the full post archives.