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southern MN | I've heard that too.
With world ecconomies, it might be supported...... Low USA dollar value, high international demand.
But the USA consumption and ecconomy is too big a part of our price. I think demand in the USA would back off enough to give us a carryout that would prevent those high prices for any more than a very short spike, if that. I think those types of prices would depend on a worldwide weather disaster, something like 1988 in the USA.
I'm not sure I want to bet all my marketing on having a 1 in 50 weather event pushing prices that high.
Looking back over time, whenever my non-farming friends & business people start talking about owning grains - it's been about time to abandon ship. This could be the exception to that rule, who knows?
Seems a lot of grain consumers are getting $3 corn delivered from old contracts, and are running on an average corn cost of $4 or so today. Same with beans & wheat. When those cheaper contracts dry up, I think demand in the USA is going to correct some and show up on the govt forcasts. Lower usage is going to show up as more carryover - even if we export it when the time comes, it will show up as carryover, and that will lower prices.
The next few months will be real interesting tho and we could see things we never expected in out lifetimes, that's for sure.
Like anyone, I'm just guessing, sure doesn't mean I'm anywhere near right. ;) I like how busy this section of NAT has become, fun to come & read the various opinions.
--->Paul | |
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MKT to get killed in 24 hours imo
