|
southern MN | I believe markets will crash again in ag. We are in a commodity business. Someday. Typical cycles. I remember reading the ag magazine that said back in the 90's we will never see under $3 corn again.......
Short term (couple years) the USA ecconomics (weak dollar etc.) and world demand for bulk grains seems to be setting up a very tight grain supply - not short, but tight. I believe futures traders will pick up on our shorter than expected corn crop, and start bidding up some crops to 'buy' acres.
Basis may lag far behind these futures traders. But often real buyers get nervious when they hear the futures traders buying wildly, and tend to lock in their perchases at higher than normal price. As this past fall/winter, we never ran out of corn or beans or even close, but real buyers paid big dollars for grains anyhow.
That is what happened to corn & beans last fall.
Wheat is doing that this year already.
Many things, such as Funds, weather, ecconomic or political/ terror issues can totally change any of this in a week.
However, the potential for bidding up acres/ prices by the Funds/ futures traders seems to be in place again this year. I would be more of a bull again this fall, with lots of common sense thrown in of course.
--->Paul | |
|
How high will corn have to go to get the acres this year?
