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| The USDA, ie government is going to do anything it can to keep a cap on food inflation. You talk about a political nightmare, stale employment, generally poor economic policy, deflation on many consumer goods, falling dollar, higher taxes, mid-term, thoughts of 2012 and then pile on inflationary prices in food ONLY. WHAMMY.
Why get in a hurry, USDA can drag it out and hope for a hail mary of yield number in January. Otherwise commodity prices are off to the races. What will be interesting is, if grains stall here for a couple of months and oil starts to get some leg and gets above 80 maybe push 100 early next year......that will be interesting because I guarantee grains are going to take off when we start trying to buy acres.
The corn number isn't there, and I think the soybean number might surprise people in January too. A lot of people counted there beans before they dropped or went flat. Cotton will buy more acres, wheat is doing it. Corn carryout comes in low for sure, soya need acres to stay in balance.
O, and one more thing. Even all the double dipper, dooms day guys are saying that 2011 will be better on the street. Hell a pull back now in grains until Dec or Jan is only giving us time to load up another powder keg on top of the two that are lit.
Let er eat!!!!! | |
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Will we see a 5 in front of corn tomorrow?
