Viewers Speak: Market Questions & Comments
Jul 09, 2013
***The following comments were received in response to the July 6-7, 2013 edition of U.S. Farm Report…
#1: It was a pleasure to watch the show this morning with Chip Nellinger and Thomas Grisafi. I think that the two of them were a very good duo. They said what needed to be said, didn’t have an agenda, and spoke very candidly about the potential future of ag. I watch every week and sometimes get frustrated with some of the commentary from the guests. Today was very good. Thanks, Brian Warpup - Warren, IN
#2: We all know panic sells grain contracts. The facts are the people and livestock around the world didn't quit eating because CBOT said grains are going lower. In your show you focused on supply and forgot about the demand. David Glade, Farmer from Audubon, Iowa
#3: I really enjoy the program. But being a city-slicker I don’t understand all the terms used by your guests during the Market Roundtable segment. For example, last week Sue Martin used the term ‘basis’ quite a bit and advised producers to "lock up their September basis". Basis is a word used quite often on the show. Perhaps during a roundtable segment you can have one of your guests describe what is meant by basis and how one "locks up their basis". I also believe Sue Martin made a dangerous statement when she said Dec corn will absolutely not trade below $4.10. It will be like hitting the brick wall of China. I trade futures as a speculator and know that to state a market won’t go beyond a certain price can make you look foolish when it does. I personally believe new crop corn is headed a lot lower if for no other reason than the strength of the dollar. But there are two phrases that I believe portend lower grain prices especially in this post-drought year. They are ‘short crop, long tail’ and ‘rain makes grain’. Thanks again for the program. Dave Sauers
P.S. Just so you know if I am wrong, I currently am short Dec corn, short Dec T-bonds and long the Sept. dollar index.