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SC Iowa | Those numbers imply a tight US situation, but there are many other factors
What will be the price of crude oil---which ultimately drives what can be paid for corn to make ethanol??
What was crop production in rest of the world??
Is global growth on par with expectations, or will that have changed??
Without knowing any other information, if demand is relatively unchanged, it implies the need to price US exports out of the equation......narrow board spreads and strong basis levels which encourage the global user to "buy elsewhere" vs. the US
BTW, I totally agree with your statement below about the area above $6 in 2008 being "all air"........after we had come down from that ride to the moon, I remember talking with a guy when Dec 08 corn was about 5.80-5.90 and telling him "well, if you can put your hand over the chart and forget that corn was just $2 higher-----well, this 5.80 is still a heckuva price for corn in the grand scheme of things"......
Ray J | |
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Will history repeat itself
