Craig writes in with a question for Stephen Davis:

In a recent article, you mentioned Kazakhstan inflation of 20%. Is that in wheat or their general economy?

As a point of reference in the current grains market, I was producing a small amount of wheat in the early-mid 1960's and selling it locally for about $3.00 per bushel. I was also buying gasoline for about 20 cents per gallon. Does that mean we are headed to $45 per bushel wheat?

Answer:

Thank you for writing in Craig, we appreciate your interest and input.

Kazakhstan inflation of 20% is food inflation. We do not think we will see $45 per bushel wheat; who would have ever thought we would see $13 per bushel wheat!

For Feb. the monthly chart for wheat is app. a 400 point range. You have to look back to the 1970's to see that kind of price discovery. It is very difficult to look to the past to gauge where we are headed in the future. This is uncharted water for the grain markets. Thank you again for your question.

Stephen Davis