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NW Indiana | You are completely discounting grain movement based on forced sales and purchases. Corn being up 50 cents from current level would have very limited impact on demand. Producers needing to make sales are forced to take what the market gives. The funds impact price movements more than producers/end users simply because they are the source beyond actually supply/demand. The funds are already halfway to a full short position in corn which is very unusual for this time of the year especially with the current stocks to use. That said the funds can easily get burnt in the end but in the near term there is no premium for which is certainly risk. Take 4 bushel off the corn yield and 1 off the bean yield suddenly going into next year the market would need to ration. Historically we would always price that risk. The funds run the show plain and simple. The usda should be embarrassed once again on another huge swing and miss on demand not understanding what inflation has done then being slow to adjust. | |
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Corn market
