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| Todays corn market is a demand led market which hasn't had much volatility to speak of. What is worrisome is the Fund lenght in this market but if the market needs to ration demand it needs to still go up in price. As farmers go, a lot of us seem to have to sell at least to the 60% level of production to cover input expenses. If 60% of the crop is sold to cover expenses that would explain the wide basis. The grain is already priced and it's a done deal. Now will farmers hold off on selling more until when? Next Feb/March when the planting intentions come out? How much more Fund money is there to come into the market? I think it's time to buy back all sales and try to capture a little extra premium to make up for yield loss. As the funds run the market up the top may be put in when the shorts start to bail because of margin money requirements. Am i right at thinking that as farmers deliver the grain elevators lift the hedges. When they do so, does that ever cause a price reaction on the board. I perhaps am thinking to deep. Anyway with the Fall being as early as it is there should be no problem with neccessary tillage for planting next year's crop. So everyone plant a lot of corn sell it at a profitable leval and buy Beans to go up because they will need to buy acres from corn. This could turn out to be the most explosive market this spring that anyone has ever seen. Good Luck everyone! | |
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Market Fundamentals and or verses market Funds
