|
| I think there is still a strong fabric of disbelief throughout the country side.
These markets are not going to back off and heres why.
Everyday that goes by more and more corn is getting gobbled up by ethanol plants coming on line ,not only has demand not been curbed by this runnup in prices it has increased. All last summer farmers sat in wide eyed wonderment how the market could absorb so many corn sales at 2.50- 2.80 and calculated their 40 cent ldps added it up and came in at 3 bucks and they just kept pouring on the sales. All the while their sales were absorbed, not by endusers,but headge funds. So now here we sit with many farmers having multiple years sales and end users with little or no coverage, and headge funds all rolled up in huge profits. Lots and lots of elavators carrying huge huge headge positions with many margined over a buck and a half a bushel and getting closer to running out of money every day and when they do, they will look to the farmers for margin,since many contracts have a 48 hour pay or liqiudate clause. Fertilizer ,land and rent prices all flowing with the rising tide of the market.
Hogs ,cattle and exporters seem very happy to try and defend their businesses at these prices. Hog and cattle going right up with corn . Exports way ahead of pace.
Plant more corn? I think the bean market wants to defend their turf also.
Much higher prices are coming!
Edited by fatbottomgirls 2/4/2007 23:04
| |
|
|
Just my opinion ,of how it will go.
