I think in the back of our minds we all knew this day was coming. If I have to guess, I'd say the index funds are legging out of the agricultural commodities. This is why the market seems to be broke. I read today where I believe it was Decatur, IL is posting a 40-45 over basis for corn which the article stated was a record. I have a feeling positive basis records all over the country will be broken before this summer is over. Look at the cattle market. Cash is a good 8-10 bucks over the futures. All the excuses in the world can come out about 90 day corn being planted in IL, etc. However, I believe the indexers just want less and less exposure to agricultural commodities. The blowoff top in corn will occur in the cash market rather than the futures market.
