The grain markets are trying to secure acres. Utterback Marketing President Bob Utterback says what’s different from other years is the weather premium is in the market before the crop is planted. “This is the first time we’ve had this type of weather premium in South America and in the money supply before planting. The issue is how big of a response we’ll see in the corn acres if opportunities are given to get corn seeded.” Utterback says history with this type of rally indicates about a two-years of good prices followed by six years of poor crop prices. “Once the high is put in, you can put in long-term assumptions about demand and the increase in production.”
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