Forgive me for returning to this topic again, but history is being made in the corn market and the mainstream press isn’t paying attention. Corn prices hit an all time high last week. As you pull on your boots and head for the garden or fields for spring planting, what are your plans? Are you ready for some seismic changes in food prices? Do you feel too helpless to do anything much but keep on hoeing? Am I overreacting?
Corn recently made it well into the $7.00 plus per bushel range, to an historic high, and a rise of about a dollar a bushel from the week before, indicating how erratic the market has become. As I write this, the market is bobbing up and down around $7.50 like a basketball during March Madness. The USDA just came out with a report in which it said, much to the surprise of nearly everyone, that corn stocks remain unchanged. But then the experts came on with a litany of “it depends” about how one should interpret the meaning of “unchanged.”
We’ve heard for months now that corn was in short supply. There are a number of reasons, supposedly. The demand for ethanol was going up, supposedly. The ethanol plants were buying more corn, supposedly. Other countries were importing more corn, supposedly. Weather outlooks are iffy, supposedly. I can write more sentences ending with the word ‘supposedly’, but what’s the use. Even the grain traders are saying they don’t know what’s happening.