You are right. The conversation should be about whether $12/bu is a good place to lock in new crop.
A conference call this past week highlighted the strange difference in fundamentals between old and new
crop corn/soybean. US corn is extremely tight old crop carryover but supplies look adequate to surplus
new crop. Soybeans supplies are adequate old crop (yes even with the problems in South America) but
have potential to be tight new crop. The USDA seeding intentions report will be an important one and
from there actual seeded acres. Looks like an early start to seeding in the US as well which will favor corn.
Note the inverse in corn futures.
[URL="http://www.farms.com/markets/?page=quote&sym=ZCK12&mode=i"]CBOT Corn Futures[/URL]
A conference call this past week highlighted the strange difference in fundamentals between old and new
crop corn/soybean. US corn is extremely tight old crop carryover but supplies look adequate to surplus
new crop. Soybeans supplies are adequate old crop (yes even with the problems in South America) but
have potential to be tight new crop. The USDA seeding intentions report will be an important one and
from there actual seeded acres. Looks like an early start to seeding in the US as well which will favor corn.
Note the inverse in corn futures.
[URL="http://www.farms.com/markets/?page=quote&sym=ZCK12&mode=i"]CBOT Corn Futures[/URL]
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