The October crop report confirmed that the laws of economics have not been repealed. Keep the price of any commodity too high for too long and people will find a way to use less and/or grow more. This was the sobering result of the USDA report released on Oct. 12.

Without boring you with a lot statistics, the bottom line is high prices substantially hurt exports of corn, soybeans, wheat and cotton. Domestic consumption’s also been hurt, and it’s widely anticipated that because of recent high prices, acreage will increase sharply this coming spring for corn. And due to the price relationship with soybeans at this time, we still feel that will be the case.

The bottom line: At the risk of sounding like a broken record, these markets all peaked in September and began a long-term bear market. That trend is still underway.