|
Mascoutah, Illinois | Are farmers already holding grain is my question to everyone or is it the harvest being so late? Basis levels are astronomical around St. Louis for December and January delivery. Corn is plus 12 and beans are plus 32.
My thesis is many farmers put up quite a few bins with the big incomes some of them made in the previous years. Am I wrong? I just don't know. It appears farmers are helping prices by having so much more storage on the farm.
My second thesis is either we didn't have as big of a corn crop in 2008 or we didn't plant as many acres as was reported for 2009. We should have the mother of all carryovers when this harvest ends yet prices continue to try and press higher. If the bottom is already in on corn, will prices head a great deal higher? Any opinions would be very helpful.
It appears if folks are holding the commodity based on what I see in front of me instead of holding the "Dixie." | |
|
The Demise of the Dollar
