Is It Time to Be Aggressive with the Ags?
By Patrick L. Yon ISSUE 302 | FEB 2004 For the past eleven months the U.S. economy has seen very little inflation. The U.S. dollar has been sliding, interest rates have remained low and the job market continues to be sluggish. Conversely, agricultural prices have been on the rise during this same period of time. As we approach the harvest season for corn and soybeans in Argentina and Brazil, and the planting season for these same products in the U.S., the same question is on everyone’s mind. Will this rally continue or will it fail? It is hard to believe that on July 31, 2003, March Soybeans made a low of $5.15 1/2 per bushel. Over the next seven months the soybeans proceeded to rally $3.39 1/2 before topping out at $8.55 per bushel on January 23, 2004. Corn rode the coattails of the soybeans during this time but the gains were far less impressive, about $.62 1/2 per bushel. So, what caused this notable rally in the soybeans, why did the corn lag so far behind and which one has the bri
