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Northville, SD | We weren't using this much energy in the world, and weren't trying to replace energy with grain. For the first time as long as I can remember wheat is leading the charge and I mean Custer style, and the world just doesn't have any. Finally Europe doesn't have enough wheat and that is what is the whole market in the world is actually responding to. The US is trying through Government mandates to replace fossil fuels with grain produced fuels and we forgot that the world can get itself into a position where it needs wheat. And the Ukraine is considering stopping exports! Wheat is an inelastic demand/supply commodity, we need so much and that is it, and noone has it. Sure everything will turn around, but the new "wow" is energy. And that is corn, and we still need wheat. WE DON'T KNOW WHAT IS GOING TO HAPPEN, BUT IT WOULD be a good BET IT WILL BE HIGH. And don't think landlords aren't watching closely. Next July corn will be plus $5.00 unless we get another 90+ million acres and it looks like beans might hold that to 80 million acres so before next harvest users won't allow themselves to run short before the next time around. (08 harvest) Mark $5 on the calender. | |
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How high will corn have to go to get the acres this year?
