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ShelladyOptions
Senior Contributor

OptionEye....May 31st

Good morning..

 

'The pain in Spain falls mainly on the grains' was the talk around the water cooler this morning. 

 

Hard to write anything positive as the world continues to melt around us. Will we get some sort of QE3? Yes. Will we see a turnaround anytiime soon? No. 

 

I really believe that the problems are systemic. The talking heads on TV continue to look for the silver lining but as this Euro garbage drags on and our economic indicators continue to lag, it gets harder and harder to keep up a brave face. 

 

What is the feeling out on the farm? Do you share my concerns or is this a chicken little event? The ten year yield is killing old aged pensioners. Our 401k's are taking it in the shorts. However, land values and rents are through the roof. Will this continue? 

 

 

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2 Replies
sw363535
Honored Advisor

Re: OptionEye....May 31st

No Scott, It cannot continue. 

 

Ten year yields are at least on the positive side.  I have never been comfortable with the amount of 401Ks in the commodities markets through Funds.  But, as you say there is not many places to invest now.

 

Getting into high priced land is a lot easier than getting out of it when it devalues 25% or more. 

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highyields
Senior Contributor

Re: OptionEye....May 31st

Farming will hit the skids.  Since we have had cash rents paid that CAN NOT be penciled out with this years prices in new crop I'm sure everything is going to stop.   I had it in my head we had an outside chance at $7 dollar cash corn again this summer with, tight supplies, issues with Russia, Europe and the black sea regions wheat crop, and drought in South America  but evidently the money scares have placed a damper on everything.  
You might know more then anyone else, but was European money the first to exit the market?? or was it just "lets jumps ship" all at once with the grains recently.   


I don't think $7 old crop is in the cards this year, even with a minor/major hiccup in production early in the growing season.   We had limited rainfall in my area, .5 inches is all I recieved.  

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