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| If this were me, was paying interest, I would be liquidating old crop. Here is why: I have some serious concerns about the amount of corn we used between Sept. 1 & to current in the manufacture of ethanol. Exports are good, and will continue so for awhile but, in my experience a strong domestic demand is required to maintain high corn prices. If this stocks report is bullish, I think it is already anticipated in the market; if bearish, old crop most likely will have put in a top...unless we have 08 weather problems & that is pure speculation. If we get a usual spring break in prices I would consider the purchase of calls or futures. The other consideration, if we would by some chance get an additional bull run in old crop, the basis will again be pressured. In other words, we are at the time of the cycle when it is usually better to own paper than inventory. Cheaper too & if you stub your toe...we can entertain each other at the car wash. | |
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SeniorCitizen
