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New Mexico | Thursday ( today ) is in fact the start timing point from most vantages.
Previous up move in grains over July was actually a deflation corrected Up which occured in Most other industry segements in stages thru last quarter of 09 on.
010 just happened to be agri's time for said Up adjustment too.
That's how "trickle down" works. Takes time for the bread crumbs from the tops to be added to the water for the folks down below.
Keep in mind it takes $12 cash wheat to run with $4 corn in wheat/corn compete areas.
Reason is gross product produced favors corn, thus the govt and market aspects of marketing more product result in higher producer profits generally from corn.
Whole deal eventually boils down to ACRES.
Relief acres now are the usa harvest now then the AU harvest ( say Oct ).
Since the dry deal basically looks to be now a long term shorfall of 50 to 70 million acres of production ( EU/Asia area), the market goes Up to the point of securing ( replacing ) that production from More ACRES in other areas of the globe.
Most obvious places ( with moisture ) where acres can be added for decent 011 net production Ups is both the usa and canada.
Just a matter of price now.
Edited by Markwright 8/5/2010 14:05
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True rally is just started,
