Futures markets are based on the perception of future demand for a specified price. Recessions/Depressions don’t help. And its worth noting, unlike 2008, the grains/oilseed sector is strongly integrated into the energy complex with biofuel policy. If the energies go, there is no way the grains and oilseeds can detach themselves. 40% of US corn demand and an equal amount of the bean oil demand base currently goes through the fuel market. In 2008 it was 25% and 15% respectively. |