07-25-2012 08:17 AM
These moves are amazing.
Corn rallied back 33 cents yesterday after having been locked limit down....and after seeing MarketEye's crop tour pictures I can see why.
I still feel as though the market has not woken up to the fact that things are very bad out in the country. Stories now doing the rounds that farmers are struggling to fill their contracts with the elevators. I can only imagine how bad things are out there.
The world is struggling with negative interest rates. Europe needs to TOTALLY restructure. We need a few government failures and a few bank failures to hit the RESET button. We are in such an unhealthy state. Then, throw a food shortage on top of things....ouch.
Let's see how we get on today. Don't like what I am hearing.
07-25-2012 09:13 AM - edited 07-25-2012 09:15 AM
Appreciate your comments. I see the traders must have taken off their rose colored glasses today. A pity. I know many of farmer that would have like a better pull back to get out of some new crop contracts.
FWIW, I am still hold old crop. That two day drop didn't even make me blink. Corn just above last years prices tells me the rally hasn't started. Denial is still abundant. All that rain is coming when? Now we are starting to hurt soybeans yields too. Water is becoming an issue for more than crops. And the heat will be terrible today and then take a few days off and be back next week.
BUT, the good news, won't have to work long days this fall. Will need half the fuel. No need to worry about getting NH3 on, can't pull it if it doesn't start raining. I think I could take a fall vacation in October, will need something to do by then.
Scary thought, all these broke countries and the masses are hungry. Yes, I think the decades of cheap food might be over. MIght have to choose between an IPhone, cable TV and dinner.
07-25-2012 11:48 AM
By the time the gov't gets around to passing such a bill and signing it into law, the horse will have already gotten out of the barn. We may very well have an obesity problem here in the U.S., but we're taking measures to correct this problem right now. A lot of diets will more than likely be affected in the next five years.
07-25-2012 09:27 PM
That would be meat in the diet. I have a feeling plans are being carried out regardless of whether or not corn drops a buck from here. The senator wanting to get rid of it and it actually becoming law are two different things. Even if he gets his way, it will be months before it comes into action. The only way immediate action is taken on the mandate is either through an executive order which has almost zero chance of happening or the epa which again will take months to occur. The gov't is always tardy to the party, and this will be no different. They have a knack of coming to the rescue trying to fill the car's gas tank after it's already been wrecked. Demand will be wrecked before we get any gov't intervention.