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SW Iowa | "Roach: Well, again, the reason the prices are falling is primarily speculative selling. We really don't have very many farmers selling other than people are cleaning up the ends of, cleaning the bins out and so forth and we still have one other event to go through and that is when all this delayed pricing corn gets flushed through the system. Remember last year August 31 when we were at the Farm Progress Show was when we posted the low on corn and it was the day that we flushed through all of the corn that had been left on the priced later contracts that never got high enough for people to price. And so I think we're still dealing with that speculative issue and there's still more room to go lower I'm afraid to tell you. We started with the funds short across all the crops 460,000 some contracts. It went all the way up to the point where they were long 300,000 and now they're long 46,000. So they're still net long the market, sold out over 100,000 contracts the week ending Tuesday according to the CFTC. So there's still more speculative liquidation to come and there's still another round of the farmer movement I'm afraid to come. So we may actually notch a little bit lower but I believe it's buying opportunity for anybody who is wanting to accumulate feed or reown grain that they have sold."
http://site.iptv.org/mtom/story/27633/market-analysis-john-roach | |
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John Roach says a another flush is coming in corn
