Friday, May 18, 2007

Corn high? Just watch....



There's some law in physics that says that matter observed is matter changed. If you watch some photon, it behaves differently.

In the same vein, when I was a kid I used to think that by listening to radio broadcasts of my beloved Cleveland Indians I could help them win. (Actually, deep down I still think that.) Is it possible to believe the markets work the same way--that when we watch them and cheer for them to go up, well, they just might.

Or maybe it takes people working both sides of the fence? That's the case with a new poll on Agriculture Online: What will be the highest 2007 corn price? It takes two to make a market; there are both optimists and pessimists:

Commenting on the poll, an Iowa farmer writes: "Corn plantings will soon be completed and the anticipated bumper crop will become a reality to the gurus at USDA. BTW the soybean futures may benefit from the over-planting of corn. However, that may well be a temporary phenomenon as the bean price may well collapse in sympathy with the declining corn market. In the end, we will produce too much of everything."

On the optimistic side of things, a Minnesota farmer chimes in: "My 'Ouija Board' says we are going to have a hot, dry July....so $5.50. The Stars say great weather from here out so $3.50. It is obviously up to the weather. But next winter we will have round two of the "Battle for the acres," so don't expect any 2 in the front number for the price of corn or 6 in the front number for the price of beans. This is an unprecedented demand market. So expect ups and downs, but don't expect low prices for several years minimum."

What's your guess? Take the poll, and see if you can help change the matter.

No comments: