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Article: Markets in equilibrium.(Grains/Ingredients)(prices)
- Article from:
- Feedstuffs
- Article date:
- October 24, 2005
- Author:
CopyrightCOPYRIGHT 2005 Miller Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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AS the 2005 crop year draws to a close, supply and demand have reached an equilibrium that is holding the grain markets in narrow trading range. The December corn futures contract had only a penny trading range on Oct. 19.
With harvest wrapping up, the market knows the general size of the crop--which is large--but not who or what will use up the corn and soybeans. "Demand isn't strong enough to tip the balance," explained Don Roose, an analyst with U.S. Commodities in West Des Moines, Iowa.
Given slow export sales and low feed use, finding the catalyst to move the market may be difficult.
Export sales did pick up a bit last week. Corn sales ...