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Central Missouri | The prices we see today aren’t because of tariffs or the Chinese or any one specific cause. They are a result of the commodity cycle of grains. Grain prices reset themselves higher in 1949, 1973 and most recently finished resetting in 2012. About every 30 years. After the reset prices traded in a range and for a large part of the time in the lower part of the range. For corn we will trade between roughly 2.60 and 8 on the futures market with most of the time between 3.20 and 4.20 but we should have about 4 opportunities in the next 20 years to sell corn over 6 dollars and once or twice futures will have a 2 in front of them. The key tp prospering is to sell several years of production when prices exceed 6.50 or so and be able to store a year or more worth of crop when prices get below 3.20 or so.
The tariffs and the Chinese are part of the price today but price was going here anyway. We and the rest of the world are just too good at raising grain. Raise high yields, merchandise your crop and make multi year sales when prices get high. This is the template for the next 25 years give or take a few years. | |
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Last 20 years all we been told is gear up we have feed the people of china...
