Crude and corn update
A lot of the farmers I work with are reporting that it will take about $40 to $50 more for per acre for the corn fertilizer in 2012 than it cost last year. In September of 2010 when we bought the 2011 fertilizer Dec 11 corn was at $4.40 - so it will take about the same number of bushels to buy the corn for the 2012 crop. I look for March corn to challenge $7.00 - unless the crude oil market moves sharply lower. The $90 level on nearby crude is now critical support. With the inventory of flights cancelled yesterday refiners will be able to make a lot more heating oil and diesel with the inventory that would usually have went to the airlines. Getting ready for the next heat wave - could be above 32 degrees for the first time in 2011 by Saturday.