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| Yes you are correct. It also hit $5 3 times before that starting in the early 70's, which was real money back then.
An older farmer told me once he almost lost his farm on the 2006 wheat rally. He was a shrewd marketer and knew the 30 year history of the wheat market, making brief stops at around $5 and quickly getting beat back down again for several years. After having gone through that 3 times in his career he vowed that when it got back up to $5 again he'd finally sell it for several years in advance so he could enjoy those prices more than just one year at a time. Anyway that is exactly what he did, he used all of his marketing wisdom accumulated from his entire farming career to market several years of $5 wheat, even beyond what he could possibly raise because certainly the price would get beat back down again just like it always had for the last 30 years. As we all know from that point forward $5 essentially became the floor for the wheat market instead of the ceiling and the paradigm had permanently shifted. | |
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Wheat bulls
