The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Dustin works with a wide net of large producers throughout the Midwest. His analytical market approach and objective hedge strategy development is specific to the needs of every individual.
Yes, that was one of the comments I was refering to. My point was that he doesn't make sense. The funds have been net longs in corn and soybeans for the majority of the year. This doesn't include the massive longs that are the Index Funds. You could argue that they have been keeping prices artificially too HIGH. So to infer that the traders are pressing prices lower is a complete falacy. If they are going to press prices lower, they should start off by being short the market, not long. We are the ones that are supposed to use fund longs to our advantage and sell to them.
September 17, 2009 8:42
Where did you go to school and learn to do math like that? They should send you to Washington. Obama needs a math major like you.
The cost of production is going to be much lower than last year. Just because the current price is below your cost of production, it is not below THE current cost of production. If I bought all of my corn needs at $4.50 this spring, does that mean that hogs should have to be 70-cents because I was wrong? If your break-even falls to $3.25 next year because annhydrous is down under $400, does that mean that farmers should still get $4.50 for last year's crops because they paid high inputs? Maybe we should just all work fot the unions or for China if that's what we really want. I'll stay here and deal with my own mistakes.