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FBN’s Jeff Flock on how the 2012 drought took a major hit on the USDA’s lastest crop report with Eric Wilkinson, Blue Group Grain trader.
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The USDA released its latest crop report this morning and the brutal drought conditions that have -- the midwest for -- the summer.
Have led to some pretty dire conditions corn production is down 13%.
Soybean production down 12% compared to last summer.
Just blocks at the CME with a look at have -- news is impacting commodity prices Jeff this is terrible stuff.
It is bad stuff but let's say -- the market in some -- expected it but I think they were even surprised at how honest the US TA was today in this report take a look at the intra -- chart first because you know this is one of the first big big crop reports.
Where the trading actually took place strong release of the crop report.
Which in the past you know you had some time.
Eric to digest this a better Eric records of who's a great story by the way we -- you first -- the Fed fund futures Fiat which traded for fifteen years.
-- you got Smart got out of the there PI moved out of there when the the Fed basically went to zero and stay there for four years and I don't -- really move in rates any time since that markets.
Yeah magazine is that you're Smart in the corn take me into the into the green room if you will this is us soybean oil and meal.
Let's take a look at corn today we saw the -- -- chart it really had a wild ride -- the beginning to be but now.
Now it's pretty flat.
What and then even pull -- -- yeah we rallied really hard up that number right off the -- traded up do 849 which is resistance area that I had -- -- forty -- all time record right yes it is is an historical high for the contract absolutely and then we hadn't started selling off and late in the day we've done in didn't negative.
Territory are much farther -- corn market have to run you know what I -- how much you show me something to face then come back over here if you would.
Wanna get the camera back over here weren't didn't keep didn't I think -- gonna stay stable up in this area because it.
I think that there's just such huge man right now with ethanol and everything else Eric -- a trip across country all the way from here -- you talk.
Some of what you brought back talk about how serious these traders are about getting the information.
This -- absolutely you know if you're serious about your business get into the field and actually see because when you're driving down the road you can actually tell what the -- -- looks very green looks pretty how does it doesn't you can get eight -- corn and still come up but this is your yield.
And basically what's happened is is the -- really killed.
The the stock and everything else and when everything started hassling early.
These ears weren't certainly grow yet because there wasn't enough.
Ended moisture in -- like that.
So this is abortion this is a basically a corn and abortion yes absolutely because the decided that it didn't wanna spend the energy do -- -- colonels and Eric Wilkinson.
Smart trader cannot tell you can't get any more up close and personal what your trading in this sometimes you think that traders are out of touch with.
What's really happening out in the field.
Not so.
-- you.
Find the best to flat you're great at a great.
Constraints.
