Corn, Weather and the MarketRecall that the bearish 28 June Acre report caused a sharp sell-off in the December corn contract; down to about $4.90 per bushel. End-users found that to be an attractive price level prior to pollination and various speculators also perceived a temporary opportunity. Consequently, this combination of buyers drove prices back up to about $5.25 per bushel which was an area of technical resistance. As this price action was transpiring, improving weather forecasts made it increasingly evident that the U.S. corn crop would not be threatened by adverse conditions during pollination and the prospects increased that the $5.00 per bushel level would again be penetrated.
Northeast Interstate Dairy Compact HistoryClients may recall the disruptive regional dairy policy known as the Northeast Interstate Dairy Compact (NEIDC) which was in place from 1996- 2002. If not, a quick primer follows:
The NEIDC empowered an appointed commission – made up of state bureaucrats and dairymen - to effectively set the minimum farm gate price that bottlers must pay for fluid milk. It was intended to be a temporary measure to tide over dairy farmers in the six New England states until a more comprehensive national dairy policy reform – unachievable during the 1996 farm bill debate - was crafted. In all, it cost consumers in the northeast at least $130 million in higher retail milk prices before it expired in 2002. Though the New England states comprised only 3 percent of dairy production at the time, the price-setting power even applied to milk entering from states outside the compact, such as major dairy producers New York and Pennsylvania.