Futures Prices Update
From the "Rule of Thumb" that farmers are suppose to use when figuring out what crops they are going to plant for the next season it now looks like this:
Current prices for December 08:
Oats 457
Corn 556
Wheat 1149
Soybeans 1428
Cotton 85
So the prices based on corn should now be:
Oats 278
Corn 556
Wheat 834
Soybeans 1390
Cotton 139.0
So according to the ratios,
Oats are high by 179, (39%)
Wheat is high by 315 (27%)
Soybeans are high by 38 (2%)
And cotton is low by 54 (38%)
The commodity that is the farthest off is still Cotton, and it is now the only one that is low relative to corn. Well it is low relative to all the others.
so I am thinking it is going to go up, or everything else is going to come down.
My plan is to hold on to cotton until it is only low by 10% to 15%, or until it is not the lowest commodity in the group.
