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Red River Valley | Last year many dumped corn right out of the field most I believe were looking at the fact that they were getting a large Revenue check and had what seemed like a large gov. payment to match it up with.
So they dumped at harvest only to see a large $1.00 ish rally in corn so not wanting to make the same mistake twice in a row this year they put it on commercial storage and waited for the rally that as of yet has not materialized so now comes nut cutting time when money is needed for March 1 rents along with equipment payments.
Last year the Farmers willingness to sell at harvest lead to an early bottom at which time the funds look around the room and could not see the next seller and reacted with them buying back short position. This year the farmers having learned from last years mistakes held it off the market and instead of the funds thinking lets get out they all have for the most part stated that we can stay short and out wait the farmers an then they will have to sell it to us when they need the money.
This is not the first nor will it be the last time in my farming career that farmers use last years play book for this years marketing plan.
Not that I wish bad on my fellow farmer but until he pukes his product onto this market I think rallies will be fleeting at best. | |
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WE WILL HAVE RALLIES !!!
