New Highs coming this week?

[Red Steele]

Strong close....markets seem poised to take out the highs in corn and soybeans on the old crop. I would not bet against the $7 mark on corn being broken, maybe even yet this week.

Hope there is a lot of spillover strength into the fall markets of 2011 and 2012, too.

Anyone heard of elevators getting into margin trouble yet with trying to carry lower priced grain in the out years? I would think that is soon going to be an issue again.

I have margin financing in place to absorb a couple of bucks on corn and soybeans in margin calls on my normal production, if I wait and have to margin the crop hedges myself, and I know it does really slow down my eagerness to hedge anything.

[jec22]

Well, when everyone takes a breath...it seems to me that we should have a 'turnaround' Tuesday.  And that would not be up.  One always wonders with all the commodities rising...if we are seeing alittle 'hoarding'.  Might be due for a mini bubble pop.   I am very bullish long term.  Not looking for any big sell off.  But surely somewhere we slow down and regroup.

[rightone]

Most overlooked global weather has been that of the only NET export agri product supplier on the globe, which is the usa.

Getting all products out and delivery logistics of volume to port really sucks right now.

Paper markets higher and basis narrower every day.  

That means CASH PHYSICAL everything agri is getting hard to get delivered to ports.

WHOLE complex should be considerably higher every day for this week and maybe next week too.

Amazes me cash cattle are so cheap...

Heck if they can get em $119 cwt would be slightly close to a real global market...not this persnikety $109 cwt.   

Heck aint even enough dough in that to move the snow.

[Red Steele]

My July 2011 screen shows 6.84 as I type...only 16 cents to break throught $7.

Will we trade the 7.10 to 6.50 range for a few days or weeks, break up to the $8 range, or is this going to be the top when it hits $7.10?

Wish I had all the answers.

Just for comparison...in 1974 when my father shelled out his corn cribs and hauled that yellow gold to town for $3.50 per bushel...a first class postage stamp was eight cents. So if corn had kept up with postage, the highs now would be only $19.25 per bushel.

Gas was thirty five cents a gallon when I first filled up a car....that would put corn close to $35 per bushel.

Just saying that you can make $7 corn look awfully cheap by comparisons.

[jec22]

Good call, what do you see if we break 7 soon?