What a day what a week, what a year.
WOW. A great way to close out 2010-- new highs in the corn, and soybean futures. For the week corn was up 15 cents and for the year up $2.14, for soybeans up 44 ents for the week and up $3.55 for the year. It is more amazing the way cattle, and feeder cattle keep going. The market corn and soybean markets are overbought - but the trend is up. I wonder if we will get a gap next Monday. It would be a gap on the daily, weekly, monthly and yearly corn and soybean continuation charts? Happy New Year - I hope to connect with some of you at the Ag Connect conference in Atlanta. With these active markets I am doing a few selected seminars and a lot more Webinars.
Re: What a day what a week, what a year.
Monday sure feels setup now for a blow the top off type of rally.....I could see it starting off up the limit in beans and corn, and ending the day sharply down as some speculators take profits, and farmers sell.
Is $7 corn and $15 soybeans going to stop this market, will we make it to $8.50 corn and $20.00 beans? or are we at the top right now?
One thing to think about...the dow jones industrial average...I was watching some old movies, and in one of them...early 1970's, it is talking of the dow average at 970....not 9700,.....970...under 1000. if corn would rally like the stock market has over those decades, we would be gasping at $30 corn now.
Not saying anything like this is plausible, just that you should not limit your thoughts....corn is not a widget like someone else said. Mother nature calls some of the shots on how much is going to be available.
But these higher prices will encourage all types of new land being brought into production, and increased production on what is available. I am going to add an irrigator on a farm that already is making 175 bpa, just to get it past the 200 bpa threshold. And I am sure that story will be repeated all over the corn belt.