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South Central Iowa | 2012 took multiple years and occurred during/at the tail end of several years of massive demand growth. It likely won't hold as well in a one-year drought spike.
In 2012, cz12 dropped from $8.25 to $7.00 from the end of August to the end of September. Cz13 dropped from $6.60 to $6.00 in that same time frame and Cz14 held pretty steady around $6.00. So two years out we had a $2.00 inversion in corn. In soybeans, around the first of September, 2012, Sx12 traded a high of $17.89 while Sx14 was at..... $13.25. So a $5.00 inversion there and if you objectively put yourself back in the moment, you know that price and the $6.00 Cz14 looked like crap compared. Now add in that we likely won't reach such a lofty level in a one-year drought spike and it will probably be more inverted due to the difference in price structure from 07-13 vs 14-20 or whatever, and my prices above are pretty close to reality.
IT'S WASDE TIME!!!!!!!!!!!!!!!!!!!!!
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A Positive Perspective on the Trade Tensions
