explained it common-sensically and definitively in the cme pre-report briefing re: Corn --- $6.00-$6.50 is the NEW sub-$4.00 on prompt prices...........or the new $2.00 - $2.50 pre - 2007. I don't disagree...."grains are in a lull."
SA is already questioning the planting of second crop corn due to low prices. How long will it take at these levels to discourage much more prodcution? We are near 40-year lows in global supply. We have no substantial carry over in the US. This 800 million thing is just fine and dandy to everyone but we find out it's not. Realistically we need 1B plus. We could find ourselves in the same pickle next year with us being the supplier and SA not having supply.