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southern MN | I think next harvest (this fall) we could be in a very different grain market than we are in now.
It is likely 'buying acres' or a weather scare will make something break away into even higher prices, it is also likely that a planting report or a govt action or an ecconomic condition will make one of the crops drop quite a bit.
Exactly which crop will do what is anyone's guess. If we knew for certain, we wouldn't be farming.
Odds favor prices rising for the next 3 months with one of the big 3 shooting higher, one possibly dropping some but the average would be higher.
I believe '07 wheat prices, which are nuts, will tranfer soon into more realistice '08 prices which will seem like a big drop, but only reflect the reality of no wheat left to sell so they can set it to any price they want now, vs actual commodity buying of the 08 crop at realistic prices. I think we can all see that? They are using 07 price hype to drive up wheat acres harvetable in 08.
Corn & soybeans are in for a longer ride of acres & yield, good weather will lower their prices over summer, any weather scares will spike up. It will be quite a rollercoaster.
By next fall demand, ecconomics, farmers growing more all across the globe, and politics will level off or drop prices somewhat. Demand across the world will level off a bit, as production hits full ramp-up. We are always a bit behind in getting production to match demand. That will show up in 2009, even if we have pretty good demand, it may be less driving than the past 2 years, projections will tilt in a different direction than today.
My view. Probably pretty simple & basic we all know that what's your point stuff, right? :)
--->Paul | |
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MKT to get killed in 24 hours imo
