At Last A Fundamental Reason To Be Bullish Crude Oil
Drying over 400 million tonnes of soaking wet US corn and soybeans will use up a fair bit of energy!
Some reports I've read suggest that the late harvest could almost be viewed as a blessing, in so much as if the crop was all to come in off the fields tomorrow there simply wouldn't be enough drying capacity to handle it all in one go.
Shortage of drying facilities is a problem of varying magnitude too, depending on where you are, according to some reports I am reading.
In addition farmers' bottom lines will be taking a severe hit at around 1.5% shrinkage and 2.5-4.0 cents per point to dry it common at many elevators. Others report 7-8 cents per point drying without shrinkage.
In some ways all very reminiscent of our own grain harvest in the UK twelve months ago.
Some reports I've read suggest that the late harvest could almost be viewed as a blessing, in so much as if the crop was all to come in off the fields tomorrow there simply wouldn't be enough drying capacity to handle it all in one go.
Shortage of drying facilities is a problem of varying magnitude too, depending on where you are, according to some reports I am reading.
In addition farmers' bottom lines will be taking a severe hit at around 1.5% shrinkage and 2.5-4.0 cents per point to dry it common at many elevators. Others report 7-8 cents per point drying without shrinkage.
In some ways all very reminiscent of our own grain harvest in the UK twelve months ago.
