Death comes to us all. Life's but a walking shadow | Is this continual and very substantial decline in futures price ( even before planting gets started much) signal that the market really doesn't want the projected level of production? Planting intentions of 89.2 & 84.6 million acres for corn & soybean respectively were predicated on somewhat higher prices two months ago. Will producers shift or curtail plantings in the next few weeks in light of the new information?
I confess that my original plan included the possibility of stronger prices a little later but due to the weather here I can still easily stop the fertilizer delivery and keep the corn seed in the bag, cost reduce by planting soybeans and cut my losses early (to say nothing of reducing my work load).
A few weeks ago JonSCKs argued strongly that 89 million acres of corn wasn't enough. At the time, even while I recognized that he was correct that there is a significant risk of a production shortfall at 89 M I thought that a greater reduction of acreage was necessary to make the price respond. Nonetheless, I am surprised that the market is really trying to trim acres before we even really get started planting.
I guess I should be grateful for the just in time signal. Thanks "Market".
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Will the futures price collapse shift or trim acres?
