PIT VIPER S STRIKE GRAIN MARKET

New York Times on line has an article on the Chicago board of Trade grain futures today. It has no explanation of how or why the futures of a date drop off higher that the cash market. i.e.wheat

The Federal subsidy for the insurance company premium might have a part of this pit bite.
Grain farmers must carry the Federal crop insurance plan written by private companies. Farmers have a choice not to carry but they cannot claim any Federal farm disaster payments. That's the bite. Grain farmers are to report the acres planted to the private insurance companies and or the losses and yield of bushels. Acres for winter wheat planted are already reported.

Now that information is recorded by the USDA offices in USA. That becomes public information. Who needs to know how many acres planted. The total number of acres planted to winter wheat is already filed. A faster way to obtain that information is to obtain the information filed prior time with the private insurers of that commodity. I wonder if that information is secure or does that information leakaway? If you are a speculator in the pit you need to know the anticipated acres planted. Yield per acre is already filed and by checking the drought forecast for the areas planted they can estimate the bushels available.

Demand and supply the fangs of the speculator enter the Chicago Board of Trade and enter their bids based on the information they have gathered. Spring wheat is being planted now and the report date of acres will be filed soon. The puffed wheat price has driven farm rental of wheat land up to $50+ - an acre. The waving wands of the golden wheat may be in the minds of the wheat farmer but the cost of producing the wheat will leave the farmer fools gold in the granary.