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Senior Advisor

Re: What is illegal speculation

I will grant you those IFs. But, one thing to keep in mind is that developing countries economies are still in high gear compared to us and any slack given will be taken up by them. I don't see oil going to  $70.  Corn might not stay at $70 but transportation oil use would certainly go up boosting the demand for ethanol. Stocks would still be low for corn in the end either way.

 

Oil has counter balances. It can't trace an independent path just because. And food demand will not decrease. That is almost the king of grain fundamentals. Yes there could be some trade offs around the edges - but not fundamental trade offs.

 

Successful marketing demands a back up plan commensurate to the specific risk involved in the farming operation. All are not nearly the same even if they are neighbors. Hedging is a cost. Knowing the grain fundamentals is THE top responsibility for marketing. Making sales commensurate with the possibilities based on that knowledge will make for the highest returns IMO. Hedging and taking advantage of opportunities are two sepearate activities in my book. Both are useful in the correct conditions.

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Senior Contributor

Re: What is illegal speculation

2 yrs ago I think it was Palouswr was long his own cirreent crop, the yr before crop and bought a neighbor's wheat.

that artifically helps prices higher, whiohc other sold into to and collected nicely.

should it be illegal ?i

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