East Central South Dakota | the fact that markets are all about money flow and power to move markets to exert pain. The function of the market is to hurt as many people as possible. How many wheat producers bought wheat knowing it had to go up because of the crop outside of their window ? How many corn and bean farmers bought corn because they just saw their corn freeze off and is starting over or might not even be planted yet or has laid in the ground for 30 days and still isn't up ? Market doesn't care today. Market want's to stop out [or stomp out] all the above people and will "maybe" rally back when they are re-positioned. They certainly will test your resolve to defend your position. You get to know your margin call lady pretty well.
Weeks like this are hard on the farm community because they understand agronomic fundamentals very well----market fundamentals not so well---and they very seldom trade in tandem [ usually not till the $&it has hit the fan ]. They understand what a poor start in corn does to yields. Soybeans don't tolerate frost well at all---much less a freeze. Agronomic fundamentals are pretty poor right now. Fund managers are all from the "show me state". They understand how good we are at beating the extreme conditions mother nature throws at us and they believe we will raise it till it is proven wrong. That should make us feel good-------right ?
If these are the ideal agronomic conditions why don't we just start planting in March every year ? I know it is frustrating, but this is the game we choose to play and I don't have a replacement idea that would work better, so it is time we all just smile and snicker and "cowboy up" and live with it. |
Last 4-5 days are a good lesson and example of ........
