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Central Missouri | I would bet that he fully understands how what he says affects farmers and that is why he shoots it straight as he sees it. We live in a commodity world. Commodities go from big highs to painful lows. They always have and always will. Economics rule in commodities and it takes low prices to cure low prices. Just as it took high prices to cure high prices. We just went through an era very similar to the late 60,s and early 70,s that our forerunners went through. We are now entering a period in the commodity cycle where we will see high prices every 3-4 years followed by low prices that will last several years instead of several months. What this means is that when we get to 75% of the highs one needs to price 3 years of production. Now is the time to figure out how to do it. The next time we get to 7 dollar corn, price probably wont stay there long and the following 24 months will be like these past 24. Just my opinion but history of the grains commodity cycle is on my side. Just look at a monthly chart going back to the 50's. | |
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Soy average price for 2015 and 2016 marketing year
