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(March 19, 2002) CORN: May corn looks to test $2.00 this week. Private forecasters are expecting a 5% rise in plantings this year. I'm not really too sure if that is a good idea given that we now have a 1.5 billion bushel carryover for corn and demand has been poor, at best. Nothing like adding another 2 years of weak prices to the last 5 we have already seen. A very simple economic lesson here could help the producers. Cut production by 20% and prices will rise by at least 50%. For some reason this concept just can't take hold. The government subsidies won't last forever so better business sense is a must.

 

William Frejlich

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