just started to track this. Completely missed the dip buying opportunity a few weeks ago. Not very bullish into the spring though. https://bastion.substack.com/p/cbot-corn-implied-sentiment
corn price has gone up massively from Aug 2020. then down massively from May 2021. it seems like it has found its comfort zone. It will probably move within a small range over the next few days.
agreed. Harvest has been priced in, it'll take significant change in next S. Am. season expectations for a big swing.
West Texas oil ($WTIC) breaking out at $78, 7 year high. Do you think that is priced in too? How much diesel is required to plant and then harvest 1,000 bushels of corn?
Fuel costs are a small portion of expenses for corn production. Takes 2-3 gallons of diesel per acre so $6-10 per acre. Corn production in Iowa costs $250-300 per acre so diesel cost is ~3% of input costs. ***Most attention the next few months will be SA weather.