Based on observation and experience over many years, we have concluded that people involved in grain futures markets generally prefer bull markets to bear markets. We are not sure what the psychological background of this may be. Perhaps it is human nature to be happier when prices of things one owns or otherwise are interested in are rising even though that may mean one pays a higher price for something else later on. We once knew a purchasing manager for a large food company who religiously bought futures to hedge his future grain-related needs. He admitted in a moment of candor that he was more interested in the profitability of his long hedges than in the prices he ultimately paid for the physical commodities. The reason, he said, was...

TAGS – Feed Grains, Soy & Oilseeds, Wheat, North America