I suspect the professional traders have already factored in tight supplies. The time to go long on corn futures would have been 6 months ago.
It’s going to get much worse. The western end of the corn belt, from Kansas to the Dakotas, and much of Iowa, are drowning in excess rain, and many acres haven’t been planted to corn this year. Some areas may not even dry out in time to plant soybeans. The other end of the belt—the southeast and mid-atlantic states—are suffering from a severe drought. It wouldn’t surprise me to see corn at $7.50/bushel by October.
Hopefully this ethanol farce will end with the start of the next Administration.
I suspect the professional traders have already factored in tight supplies. The time to go long on corn futures would have been 6 months ago.
Its going to get much worse. The western end of the corn belt, from Kansas to the Dakotas, and much of Iowa, are drowning in excess rain, and many acres havent been planted to corn this year. Some areas may not even dry out in time to plant soybeans. The other end of the beltthe southeast and mid-atlantic statesare suffering from a severe drought. It wouldnt surprise me to see corn at $7.50/bushel by October.”
It has bothered me all along to “depend” on a crop that depends on Mother Nature. Harder to deal with Mother Nature than it is to deal with OPEC, IMO.