Buying the breaks
Story here today talked about corn futures closing higher on renewed supply worries. Corn futures need to rise in order to slow strong demand and encourage us to plant more corn.
One analyst talks about need to "buy the breaks because corn and soybeans are showing no signs of reduced demand."
This idea of "buying the breaks." What does that mean for a farmer's marketing strategy, if anything, I wonder?
Re: Buying the breaks
For a seller, probably not much unless you wiish to re-own bushels you previously sold, thinking the market is going much higher.
For a cattle, hog, or chicken feeder....or an ethanol plant....it means buying corn inputs at the lowest prices possible.
This market is seeming to have "legs", ie something to stand on as it resists attempts to break it, and keeps moving up. Should be an interesting couple of months as all this sorts itself out.