GRAIN MARKETS FLOUNDER: IS THERE A BIGGER STORY?

Apr 21, 2019 at 06:26 AM CST
If the corn, soybean, and wheat markets were priced at higher levels than they currently are, it may be easier to understand why prices are in a downtrend, and why managed money is as strongly short as they are. Prices are generally below the cost of production, and at a time of year where all of the uncertainty in producing Northern Hemisphere crops lies ahead. It is a challenge to understand why there is such a bearish outlook. Could it be the market is making a bold assumption that crops will be at trendline yield or higher?

Apr 21, 2019 at 06:26 AM CST

If the corn, soybean, and wheat markets were priced at higher levels than they currently are, it may be easier to understand why prices are in a downtrend, and why managed money is as strongly short as they are. Prices are generally below the cost of production, and at a time of year where all of the uncertainty in producing Northern Hemisphere crops lies ahead. It is a challenge to understand why there is such a bearish outlook. Could it be the market is making a bold assumption that crops will be at trendline yield or higher?