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| Look at the futures, Nov 07 is knocking at the door of $8 now and Nov 08 is only 20 cents lower. I don't think beans are going anywhere that corn doesn't go. So if beans go to $10 you will most likely see corn pushing $5 or else it will lose acres.
Remember there is no shortage of beans in the next 16 months, only a perceived lower carry out that might or might not happen.
Even if you look at a minor rally to put beans at $8, then corn will mostly likely be at $4. Don't know about your area, but if we have enough moisture to raise 40 bu beans we can also raise 120 bu corn. Do the math. Even when you add $100 for extra corn expenses corn still beats beans by $60 per acre.
The other thing we have to worry about, corn on corn is no problem. If you go 100% beans, then what are you going to do the next year, only option is 100% corn because in this country beans on beans is a real big no no if you care anything about your farm.
Corn is going to be king for a few years and that is what is worrying the bean end users. | |
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08 Beans
