New plateau for grain prices

Jeff Lynch is grain long range planning and financial services manager at Growmark. I interviewed Jeff during our Illinois agribusiness tour stop at Growmark headquarters in Bloomington Wednesday.  He believes grain prices have reached a new plateau. 

"The risk and volatility in the grain markets is at an unprecedented level.  We've seen volatility before.  We've seen high prices before.  They tend to last maybe six months or a year at most.  We feel like we're probably at a new plateau for grain prices going forward.  The costs to handle the grain, to own the grain, to hedge the grain have gone up dramatically." 

Jeff told me that ethanol is the key driver for change in the grain markets. 

I'll post the entire interview with Jeff Lynch on the Innovations page once our Illinois agribusiness tour has concluded.