Meltdown

[cottonpicken]

We have had a major market correction across the board.Everthing crashed even commodities(except canola).China really did.

I'm going to go out on a limb here and say that were about to have a major run up in the grain price and commodities in general in the very near term.

[agstar77]

Commodity broker from U.S. believes wheat will become the new feed of choice to replace corn with a price target of 7.50 U.S.

[wmoebis]

So is this broker running out and prebuying at say $7.00 to tie up stocks. If not it is just wishful thinking and lip service.

What is our Canadian experts saying? If these numbers are credable the Canadian buyers should be buying at $7.00 they will make .50 cents a bushel. And god forbid make some farmers a little more satisfied.

Not trying to be negative here, but it is like the open market side of discusions, that there is more money for our product out there. No buyer has came to the plate and said, here's the cash, I will pay more for your product.

[cottonpicken]

Wmobeis,there are gobs of money sloshing around the world looking for a return.Tonight there is much more.

[nw9flynn]

I fully agree that wheat will become the new feed choice. It will be cheap compared to corn. All we need is for corn to have one productin blip and it is headed to the moon. Just look at how fast corn rebounded today. If you truly thought that there was no upside to wheat you would be locking in pricing at today's levels and not risking the PRO going down. I am in full agreement that wheat will be marching toward $7.50/bu by mid July.

[nw9flynn]

Wmoebis,
I think that you are thinking too much in the physical, and not how the markets work. The U.S. broker is probably advising speculaters to buy call options. The commodity game is not only user/producer relationships. The speculator provides the liquidity to the market and is truly the one that drives the price in both directions.

[charliep]

Strange talking about a $2/bu rally in a thread that starts the title meltdown. It will be an interesting summer ahead. I think we all can agree farmers should have a reasonable amount of forward pricing done this spring (won't comment on timing) with the level depending on their financial situation/ability to take risk. For grain that has been priced, some farmers may consider buying some low cost calls well out of the money but again that is an individual decisions. Under the options theory of buy stability/sell volatility, it may be prudent to sell some calls (knowing what you doing/recognizing risk).

That should confuse everyone. Having a conversation with one farmer and suggest buying a call (give them the courage to forward price and still have an opportunity to participate in a summer rally). Recommend selling a call to another farmer so they have effectively a grain pricing order in place (recognizing Tom4cwb comment the farmer still hasn't done any pricing/opportunities can slip away).