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| Just don't get it - high price grain is ONLY possible with long only funds buying like there is no tomorrow. Apparently that's over for now. You could suggest it's cheap, but realize the end user market may only get it back up towards $5 if it really gets bad. Keep in mind 2012 grew more than enough grain to go around. The demand side of the deal is still trying to pay back losses and has to deal with an economy not so interested in paying much for things. Maybe beef gets some super prices, but it's because there just isn't that much around. Hogs must have an export market and that seems to switch on and off. Ethanol is facing a blend wall, epa is more or less codifying the amount they will need this year and public opinion er... I mean media opinion isn't doing the industry any favors.
Bottom line is our frame of reference for what's cheap has to change. | |
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Drought started
