Martinsville, Ohio | I thought it was worth sharing: The most important news that I see this morning is still the increasing likelihood of rain in dry areas of Argentina and Brazil forecast for next week. FCStone’s lead weather guru is calling for very heavy rains. I don’t know how much of today’s higher prices are being caused by weather worries in South America, but everybody is paying attention. My challenge yesterday to farmers to get better at telling the story on bio-fuels stimulated Garry, National Corn Growers Association (NCGA) Director from Illinois, to share his experience with “getting the news out.” I have taken the liberty to edit your comments Garry. Garry said, “John (In response to your 12-19-2007 comments on commodity groups) I challenge you to meet and match our small advertisement budget so that we can get our message out. NCGA has a very good message that is direct and to the point. However, it would cost us over $150,000.00 for a one page, one day ad in the Washington Post. I have been selling corn for over 30 years for $2.00/ bushel. Most every person I know, who is not a farmer, has received a yearly cost of living increase in their salary. Now that we have been successful in passing legislation that would increase the demand for ethanol to 15 billion gallons by 2015, all of our price increase has occurred in such a short period of time and now we are witnessing what I would call corn envy. …there are many groups that prosper from corn as a commodity and we hope that they would step up and help us out to set the record straight. We have the facts and present them whenever we have an opportunity to speak. Since I have been personally involved in a TV interview, I can tell you that the media doesn't want to set the record straight. They want to promote an agenda that sells news. At NCGA we have worked hard to meet the needs of all of our customers for feed, food, fiber and fuel. We expect to produce a 15 billion bushel corn crop, which in turn will produce a 15 billion gallon ethanol supply and do this all by the year 2015. Yes, we have a shortage of $ 2.00 corn but there is no shortage of higher priced corn because of our 1.8 billion bushel carryover. Current food inflation compared to last year is running at 1.1%. Why are we witnessing near $100.00/ barrel oil with gasoline near $3.00/gallon and no one seems to care, yet current ethanol price is around $ 2.10/gallon and everyone is upset. It appears to me like we need more ethanol, not less. My last comment is that eventually all commodity markets have one thing in common, they go to high for a short period of time, and then they go low for what seems to be an eternity. Passage of ethanol legislation has been the greatest, most positive change for agriculture in my lifetime. I would only hope that the people, companies and agribusinesses who benefit from what we have accomplished would step up to the plate and financially help us set the record straight.” Massive advertising campaigns are one way to get the word out on ethanol, but I think much can be accomplished for little money. Where is today’s “Earl Butz” with his loaf of bread he used to show consumers how many slices were paid to farmers for their wheat? Each grain producing farmer needs a few key selling points to help them tell ethanol’s story to consumers. Garry if the NCGA will help me, I will relay ethanol’s selling points to my readers so they can promote their business and the cost will be free. I can’t match the circulation of the Washington Post, but I believe the best salespeople for bio-fuels are grain farmers. I would like to help my readers be armed with the facts and the message that’s most important to American consumers. Net wheat sales of 204,300 metric tons were less than traders expected, 60 percent below the previous week and 50 percent under the prior 4-week average. Net corn sales were in line with expectations at 1,168,500 tons, 1 percent above the previous week, but 21 percent under the prior 4-week average. Net soybean sales at 872,400 tons were at the upper range of guesses, 10 percent below the previous week and 26 percent under the prior 4-week average. Grain markets are looking toppy to me, but nobody is getting bearish |
Today's Roach Comments
