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Northwest Iowa | Reflecting back, this corn market especially acts like the 1995-1996 crop year. 1994 was a record setter for yields and when we got all done with 1995, we found a disappointing crop yield wise in the bin. Prices rose all fall and winter. And kept on going! When we got into winter, we were pushing 3.60 which was in the high range for the times. A friend who was a hog feeder, said," I don't think it will go through these highs." I said my work says we are continuing. By spring farmers were all sold out and using the "hedge to arrive" plan to sell for the next year. Neither feeding hogs or HTA worked very well. Just passing on some thoughts I had while driving. I do wonder about all those accumulator contracts out there. I've never been a fan since they are too much like the "vote for this and see how it works plan". Nobody really understands them. That double up clause in there would really make me nervous. | |
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