At the moment, unhedged grain farmers will have to decide whether to take the punt on grain prices rising to meet input costs in the coming 09 season. Depending on the availability of credit, banks will likely have a fair say in this matter also. So which will budge? Grain prices to rise of input costs to fall?
I'd be guessing on the current low grain prices, high cost, tight credit paradigm, acres planted to cereal grains around the world will take a significant hit.
