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Fort Collins, CO | I'd agree that we won't know the outcome for a month (or two, or four). I think there is a sizable risk premium built into the new crop corn market to account for those uncertainties. Especially looking on a relative basis to the value of the things most U.S. production goes to (ethanol and feed) as shown by the corn demand index we publish. If the growing problems don't happen, I'd guess we see the spread between Dec22 corn futures and our CDI narrow considerably.
A quick note about risk premiums:
https://www.quartziteriskmanagement.com/risk-premiums
Thanks for the comment,
James
Edited by qrmllc 5/20/2022 22:18
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