Here are my predictions for the crops this season. I’m long corn, long beans, and short wheat. Increased demand for corn. Huge increase in demand for beans overseas (inside information here) and the wheat crop that froze off last year had a great winter. Wheat will be plentiful. The low dollar will keep overseas demand for anything US grown high. Here is a little snippet from the AP
According to the Agriculture Department, corn planting is expected to remain at historically high levels but may dip this year because of the high expense of growing corn and favorable prices for other crops, such as soybeans.
As many farmers have switched, soybean planting is expected to be up 18 percent this year, at almost 75 million acres. Farmers are also expected to plant more wheat this year, which could lower retail prices for pasta and bread.
Soybeans for May delivery fell the 70-cent limit Monday on the Chicago Board of Trade, settling at $11.9725 a bushel. Still, soybean prices are up 45 percent since March 2007.
The Department of Agriculture report is based on sample surveys of 86,000 farm operators in the first two weeks of March.
There is a meeting this week between the FTC and institutions from the CME/BOT that trade corn and beans to see why there is not an efficient cash price market right now. Interviews and questions will be the format. Interesting to see what the answers will be