|
Mascoutah, Illinois | If you start doing the math, tell me why $6.00 corn will be a pipedream for 2013.
Soybeans are eventually going to blow through the $14.09 resistance area and will challenge $15.04 in my opinion. The next objective would be the $16.50ish area ($14.09 contract high which becomes the midpoint on a breakout minus the $11.60ish contract low equals $2.49.) If you add $2.49 to $14.09, the objective becomes roughly $16.58.
What is the normal ratio for beans to corn. In recent years, probably 2.4 will get it done and now we are roughly at 2.8 with a short bean crop.
If the ratio goes to an extreme of 3 to 1, here is what we are looking at.
$15.00 beans equals $5.00 corn.
$16.50 beans equals $5.50 corn.
Basis is already plus 13 or 14 cents for December corn delivery, so folks are already looking for corn.
I know the corn crop is more than we need from what the prognosticators are telling us so corn will need to be drug higher by beans to get acreage in 2014.
I believe those who are not bought on their soybean needs are going to wish they had before 2014 harvest hits.
| |
|
|
Tell me why $6.00 corn is a pipedream for 2013.
