Keeping Deflation in the Formula

Ag commodities, especially wheat due to world supply issues have been strong over the past couple of months.  Going forward with known supply information the pricing formulas will now need to include the deflation element.  The table here shows our beginning of year price projections versus to date prices for the year.  As can be seen on average the areas projected are running about 7 percent above projections so far.  Please pardon the format issue on the table.

2010

2010

2010

2010

2010

2010

To date

Proj

Proj

Proj

To Date

To Date

To Date

vs.

Low

High

Median

Low

High

Median

Proj

S&P

920

1150

1035

1011

1220

1116

1.08

Nasdaq 100

1480

1900

1690

1700

2060

1880

1.11

Gold

1050

1218

1134

1057

1263

1160

1.02

Copper

240

352

296

274

367

321

1.08

Crude Oil

66

85

75.5

54

93

74

0.97

Corn

350

420

385

333

425

379

0.98

Soybeans

700

970

835

869

1051

960

1.15

Wheat

450

600

525

441

789

615

1.17

1.07

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