Monday, August 28, 2006

I'm not even sure it is wrong...

Ya know, if I was a giant multinational grain company, I would start opening my basis for corn and beans to historic dimensions. I probably already have enough fall delivery contracted (not to mention old crop in storage) and lowering my bids to basement levels simply opens up the US treasury for my farm suppliers at no cost to me.

Plus after all the farmers have cashed the LDP checks, I'd calculate I can pry the rest of the crop from them at a lower price, since they will be adding in that extra xx¢ to their sales target.

Plus it will teach 'em to build storage, so I don't have to.

Just a thought...

No comments: