This led to no change in the projected total use and ending stocks. At first glance one may ask how that can be. The answer is, they feel the market will not let the ending stocks to use ration go under 5 percent, which means the price will go high enough to ration second half use to a much lower number than first half use.

Are old crop prices high enough to get the job done? It is not clear for a couple of reasons. One, we are not sure what price it will take, we are in a position we have not been in before. However, present use rates make one wonder; use hasn't slowed down enough in the almost two months since the data was collected.

Livestock harvest weights are still way above last year. But that makes some sense, given livestock prices are way above last year, but I am still a bit puzzled. However, after we get through the large group of cattle on feed now, a lot less feeder cattle will be available to be placed.

And there should be a few less hogs being fed this summer.

Corn used week to week this past month for ethanol has declined, and is below the weekly forecast needed to meet the updated USDA 2010-11 corn used for ethanol projection. However, at this time, there is still a positive margin despite the high corn prices.

Part of the weekly slowdown can be explained because this is the time of year they slow down to make repairs. So we need more time to see if the cutbacks persist.

The world gets complicated. The higher the gas price relative to ethanol the more sense it makes to add ethanol, but the high gas prices are cutting back gas use, which means less gas used, so less gas to mix ethanol in.

The later the planting season gets, the higher the price it will take to get the corn planted, unless soybean prices tank. But the later the corn planting season gets, the later the soybean planting season gets. And while that may gain you more soybean acres, it may cut into yields.

Are old and new crop corn prices high enough to ration demand and get the corn planted? On the one hand we don't know, on the other hand I am not convinced they are.

Consider spreading remaining old crop corn pricing between now and mid-July. You probably should consider taking some advantage of these great new crop price bids, but consider not getting too carried away.