Farmers React to Low Prices

7-26-07, 8:00 a.m.,
During the past few days I have traveled a bit and had an opportunity to talk with more producers outside of my normal circle. One thing seems to come through loud and clear--they are extremely disappointed with current corn prices and their enthusiasm to maintain the 2007 corn and soybean acreage mix is currently very limited.

Obviously there will be many factors to consider between now and the time of the final planting decision next spring, but at some point the market will have to again worry about "buying corn acres", as opposed to the current presumption that the market must worry about "buying soybean acres". Yet, this concept may not be embraced until some time after the 2007 harvest season and possibly not until we get a confident handle on South American soybean production by late-January.