Resolving the inverse: Drought and normal crop scenarios
ST. PAUL, Minn. —The drought of 2012 was an extraordinary event, and extraordinary events create extraordinary circumstances. With planting just weeks away, corn and soybean prices are displaying extraordinary inverses ($2 per bushel and more) from today’s price to the price quoted for new crop delivery next fall. In the next five months, these inverses will be resolved. This means that nearby (old crop) and new crop prices will morph together into one price.