What? The government wasn't medaling before that when they bought up the overproduction to artificially keep farmers in business?
What effects the markets today is simple supply and demand. With current gas sales and the ethanol mandates ethanol consumption is up, not down because more people have disposable income that can be used to fill the tank.
Basically what happens is that farmers in general plan on planting what is going to make them the most money per acre. So when corn it record highs everyone planted corn. USDA reported the next spring that 33,000,000 acres over and above what had ever been planted to corn before was now in corn. Add in a record harvest plus another grain embargo to Russia and corn fell flat. Then farmers, still riding the wave put up bins like mad to store that corn a lot of which is still in the bin close to 2 years later. Just waiting for prices to go back up. Well add in last years production with a lot still in bins, plus some from the year before still in bins, plus what's in the ground growing now and I don't see prices rebounding anytime real soon. Now it looks like beans are everywhere. Going to be interesting to see what bean prices are going to do this fall.
Draw your own conclusions.
I expect to see a lot a failures over the next 18 months. I hope I'm wrong but it's how I see things. Some have already failed because they just can't borrow any operating capital. They are stretched way too thin.
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