What goes up, must come down

Implications: The US ag sector is showing strong signs of being overheated, and is likely to see a correction soon.  The question is, how far and fast will it fall.

Analysis: This commentary and interview with a Deere & Co. (John Deere) sales representative further raises concerns that the US ag sector is overheated, and will eventually suffer a correction. 

The concern is that since a great deal of the source of the push up in prices for all the ag commodities is speculative in nature, and funded by market participants not historically common to trading ag commodities, how fast and far will the markets drop, if and when they do drop.

Farmers ordering farm equipment for 2009 before they even know the price of the machine they are ordering, in my mind, isn't a sign of a healthy sector, but rather one that is over-heated and due for a correction.