Death comes to us all. Life's but a walking shadow | My first thoughts about the situation are: The price of corn is constrainted by the price of gasoline. If the price of crude and therby the price of gasoline rises then the price of ethanol and the price of corn will have room to rise also. The slow pace of corn exports weighs on the price corn as well. Supposedly the Brazilian second corn crop is planted but if drought hits ( in May) there might be an export demand for corn.
On the other hand, the price of soybeans depends on the supply from South America and the strength of the Brazilian Real and Argentine Peso. If the South American soybean crop comes up substantially shorter than expected there will be room for more US exports and since exports are 40% of the soybean market it'll make room for the price to come up.
Then there is the question of corn & soybean planted acres here in the US. The USDA is bound & determined that US producers will plant 90 million acres of corn right in the teeth of $3 corn. If they anything like 90 million acres with decent weather the price will be well below $3, if not $2. Likewise with 83 million acres of soybeans.
It's "pick your poison", cyanide or arsenic. |