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| I think there are some constraints on the Corn market right now. #1) crude oil is lower, and not looking to go anywhere fast. #2) Ethanol prices are tied to gasoline prices, and U.S. gasoline demand is down. $5.00 corn could well sink a bunch of E plants. #3) possible loss of the blenders credit. If the futures get to that level, best guess is we're going to see very high basis levels, like wheat in 08 or whenever, I've tried to blot that from my memory. So, I suppose the question is, at what level do high corn prices cure high corn prices? | |
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$4.75-$5.00 + CORN
