From The Editor
Nov. 4, 2011
Hello Pro Farmer Members!
What a crazy week. It started with more euro-craziness as the Greek President "threatened" to hold a referrendum vote to decide if the people of Greece would accept the austerity plant proposed by the European Union. By the way... if the vote had gone through and the austerity plan had been rejected, it's estimate Greece would have been out of money by the middle of December. Which begs a simple question: "Then what?"
Then came the MF Global fiasco. Stuff on this story is still "breaking news" on CNBC... and all they're doing is reporting rumors. This afternoon... somebody tweeted the lost MF money had been found at JP Morgan... and it got reported! Of course, JP Morgan has money sitting around... just not MF Global's money. I'm pretty sure the MF money has been lost just once, but I think it has been found at least a half-dozen times this week!
The money hasn't been found... and some in the market media are even speculating where Jon Corzine will next be employed. I'm not sure what state he'll be employed in, but I'll bet he's stamping license plates!
So... the macro-economic uncertainties of the world and the MF Global thing made for an unbelieveably eventful and volatile week. But when everything was said and done, December corn futures gain 3/4 of one cent on the week. All that volatility and corn's weekly close was within 1 cent of last week's close! That's some surprising stability as it appeared the world was (once again) falling apart. Wow...
I think that sets the stage for some strength in the grain markets next week. If investors realize how stable the corn market was last week, they might ALL want to stick some money in the grain markets in the week ahead.
Here's a neat 'little meeting' --
Pro Farmer Washington Consultant Jim Wiesemeyer will take part in the National Agricultural Research, Extension, Education and Economics Advisotry Board meeting on Tuesday, Nov. 8. Jim will be speaking on the "Components of the Farm Bill and the Strategic Approach of USDA to the Farm Bill." (I reckon he'll have some fun with that!)
Other speakers will cover the impact of NASS reports on grain market volatility. Speakers on this topic will include:
- Terry Wolf, owner, Wolf Farms & Wolf Grain Systems Inc.
- Joe Prusacki, Director, NASS Statistics Division
- Doris E. Mold, Chair of the Advisory Committee on Agricultural Statistics Perspective.
Following that presentation will be two panel discussions with:
- Mike Mock, senior risk management consultant, The Andersons Inc. (first)
- Dave Lyons, vice president for government relations, Louis Dreyfus Corp. (first)
- The second panel will include Dr. Harry Vroomen, vice president- Economic Services, the Fertilizer Institute (second)
- Marv Wilson, ag biotech operations director, Pioneer Hi-Bred International Inc. (second)
Obviously, Jim will be there and will report back the most interesting nuggets from the discussions.
I'll also be on a panel discussion next week!
I'll be the moderator of "Risk Management Panel Discussion" at the Dairy Today Elite Producer Business conference in Vegas (baby!):
- Carl Babler, First Capitol Ag
- Katie Krupa, Rice Dairy
- Ron Mortensen, Dairy Gross Margin, LLC
- Steven Schalla, Stewart-Peterson
- Robin Schmahl, AgDairy, LLC
I'll be staying for the entire conference and will be tweeting some of the best nuggets from the conference. Be sure to follow @ChipFlory on Twitter to get the inside scoop!
That's it for this week...
Have a great weekend!!