Planting Rates Lag

With new crop prices at historical levels, you can bet farmers are going to set a record for planting in the next two weeks (provided they get a break in the weather).  On Monday, the USDA reported the lowest planted rate in 10 years.  Corn planting is only 9% completed compared to last year's 46%.  

Time to Change Corn Price Limits?

Last week both the President and OPEC spoke out on behalf of consumers against speculators tampering with the market.

The CME's expansion of corn limits from 30¢ to 50¢ will not benefit hedgers.  Limits were originally imposed on grain futures to squelch the immediate perceived order imbalance in the market's response to an acute event.  With speculative trades representing a higher percentage of our daily trading volume, we are less enthusiastic than we were in 2008 when we moved limits from 20¢ to 30¢.