| Chad H - 2/12/2019 19:32
As an observation of you posting in the machinery forum over the years and recently here you spend way too much time worrying about a lot of things. The current corn market is not comparable to the wheat market.
Eh. Everyone has their problems. Worrying about and researching what could slow you down when it’s go-time is not the worst problem I have observed in humanity and for some reason that tendency hasn’t hurt me too much yet. I value my time on Machinery Talk and those who have been willing to contribute to my succcess and the success of others over the years. I also value my time here in Market Talk. I directly attribute selling most of my corn within a few cents of the high last year to my time spent learning from others on Market Talk.
In regards to the corn and wheat market being similar, they don’t have to be. The principal that concerns me is that if it’s anywhere close to being profitable to produce something, producers will keep trying hard to produce more of it to make it profitable.
The only thing that stops this process is such a terribly oppressive price that there is truly no hope of profitability even with tremendous yields. This happened in wheat and is why the United States is planting fewer acres of wheat than it has planted in a lot of years. This has not happened with corn or beans.
In this regard, all commodities are similar. But you are right, wheat and corn are dissimilar in that this has already happened in wheat and it has not yet happened with corn. Hence my belief that over the coming years, corn price will be lower than it has been in the last few years. |
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