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Corn price rise: speculative bubble

The Reuter's person on the spot at the Chicago Board of Trade says the price rise corn experienced this year was due to a speculative bubble caused by money moving out of stocks into commodities.
The price is falling as the economy is changing. Of course there's no discussion on the effect of reducing the volume of this year's harvest by 20% by allocating 30% of that harvest to ethanol will have on price.

Comments (1)

David B. Benson:

Locally, the price of soft white winter what has gone from last summer's $7.88 per bushel to mid $4 range. That's so low it is not clear the farmers can afford to grow wheat.

Oh wait, the price of fertilizer has probablly also dropped.

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