Cambridge, southwestern Nebraska | I have to agree with the possibility that one more hard move to the upside for wheat may be its last grasp. Here's my thinking....should be a fight for acres for all crops in the next two months much like last year. Wheat will have to move along with corn and beans to save the acres already planted and get some spring acres. IF we have favorable weather here and around the world we should start to rebuild stocks at least a little. Historically, the world will have short crops for only so long.
I think corn will go higher in the near term which is nice with corn sitting in the bin but prices higher than where we are now is going to begin to hurt the demand. Ethanol plants are going to hurt. Livestock is going to hurt. Eventually demand will drop off and we'll have plenty of supply.
Longterm, I think we would all be better off to see corn stay in the $4.00 range instead of going to $5.00 or more. A drought this summer with potentially fewer corn acres and things will be interesting. But extremely higher prices will not be good in the longterm. |
Anxiety
