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NW Indiana | The stock market topped out in October 2007 bringing a lot of money to the "commodity super cycle" in early 2008. Crude oil topped out around $145/barrel. The volatility in the grains was impressive. In late May Iowa had massive flooding pushing the grains steeply up during June. Price topped out at 7.99 on the planting intentions report at the end of june as acreage came in above expectations. I remember that day well because I picked up the phone while the market was closed and made my most profitable sale ever. They took no protection with the market later opening up limit down. Yields werent as bad as feared so we declined into September. September all hell broke lose at Lehman Brothers filed bankruptcy. Corn fell from 5.50 in late September to 2.90 in early December. This was the height of the ethanol boom but shows the power of money looking for a home and also what happens when someone yells FIRE!! IMO we are in a very similar position so manage your risk accordingly. | |
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2008 ?
