By Matt Reese
It is never a good idea to poke a bear. Maybe that is why so many economists are encouraging farmers to watch closely for marketing opportunities for their 2012 crops. Ohio State University economist Matt Roberts shares the bearish sentiment of many economists for the
“Corn inventories are very tight because we have had two consecutive below trend, disappointing yields and that is why we have tight supplies and high prices. This is the first time since 1980 there have been two consecutive below-trend corn yields,” he said. “I don’t think that most producers are putting enough weight on the fact that we are in a short crop year. All it takes to lower prices is a normal year. I think there is a tremendous amount of downside risk here.”
With this in mind, Roberts outlines three possible scenarios in the markets.
“If we hit 165 bushels per acre, it would be a solid year, but not a great year,” he said.… Continue readingRead More »