Follow the Signals
In our last issue, elevator owner Mike was reassuring his son Jason that even in severe drought years such as 2012 there are ways to make money. Mike reminded Jason to “ remember Granddad’s words: Don’t panic; learn to respect market signals.” Crops are small and demand must be curtailed. Market signals in 2012 crop are already loud and clear: Corn almost doubled in price since the fall of 2011; soybeans went more than twice as high, almost to $18. Futures spreads in corn and soybeans...