Death comes to us all. Life's but a walking shadow | Newson was pretty pessimistic then, why should he think different now? I tend to agree with him. The market has to punish enough corn producers long enough such that they give up enough corn acres to cut the supply. Just listen to the corn belt fellows in the "fringe acre" discussion below. They still haven't taken the message to heart. They somehow think that the "fringe" producers will give up first even though the fringe producers have the clear cost of production advantage at the moment. They're being stubborn and hard headed which means the market will need to punish them even more.
Don't believe me, just look at what happened to calf producers in the 2000's. It was necessary to reduce calf production the better part of 10 million head (25%) before the price could come up to the current range and be anywhere near a sustainable price. |
Newsom
