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| I'm pretty sure most endusers are covered for a long time. On the last dip some corn got bought, but probably more for insurance against even higher prices - it was still really pricy after the dip. I remember folks talking about prices being high often in response to the fact that most had already sold (or had a hammer next to the phone). If there were lots of sales hitting the market (or even just a few), the market would be tempered. At some point the remaining unsold crop will hit the market and maybe prices will be pressured to some extent. To me overall/cumlative demand has looked high because a lot of corn was bought at lower prices. I can't imagine prices tanking, but I don't seem much demand for $8+ corn either. Keep in mind no one is expanding anything on the demand side and animal numbers will continue to reduce as folks leave the business (liquidation takes a while - you don't just wake up one morning and run all the pigs out of the barns regardless of size).
thanks,
Pat | |
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New high in May corn
