jpartner - 7/10/2017 17:33
IN555 - 7/10/2017 16:53 2007-2012 demand was growing at an impressive pace. The rally from 2006 was a demand side rally. A rally this year would simply be a supply side rally. We had to add acres every year during that timeframe in order to keep up with the demand. The only way to add acres is to give economic incentive to start growing row crops. Crp started to come out, pastures, woods etc. Crude oil was $100 and gas $3.50 giving ethanol the room to pay for $7 corn. We currently have ample acres to meet demand, maybe to many. If all three major crops grew a trend yield we would of had ample supply. After 2010's crop not only did we have to battle for acres amongst the three, we had to add acres to the overall production. This supply hiccup(if it occurs) is only a temporary problem to the balance sheet and can easily turn around in one year, that was not the case back then. Notice it took a couple large crops to bring prices down to where we have seen them the last few years. $7 corn for that extended amount of time brought ample production capabilities for awhile. Keep in mind 2010 took 3 years of crop issues to reach the peak of august 12th 2012.
What he said^^. Wow. You are the only person here that understands that 2012 was the finale of the multi-year show. 2012 did not give us 8.50 corn....a decade long bull market did. There are many formational issues with this rally. There are some clear objectives that have to be met. Failure to do that is like the somebody throwing gasoline on the fire and the rally is just the time while you were away refilling the can. IF you think its was ugly and the bottom is in, ya better hope we don't miss. Because every penny up is one lower than we have been to date (roughly speaking).
Take Care
And to be clear
