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Boone Co. Iowa | I got depressed a week or two ago, talked to e-plant manager, he basically said RFS is right now supporting the corn price by about a dollar. Maybe not exactly that much, but if a gallon of ethanol is 30 cents higher than a gallon of gasoline, the "market" would say that to get that 1 to 1 ratio, corn price could drop a dollar.
I am hoping that the 20 cent rise in a gallon of gas that I seem to be seeing here eventually catches up to my price for a bushel of corn.
There is currently a surplus of corn, beans, wheat, etc. around the world, not to mention waaay to much oil. Hopefullly this summer will be a drought, crazy political conventions, maybe even a war or two? :) Or maybe the Fed will do something that the markets have yet to "price in."
Going to be hard for corn to rally with all of the extra that we have. April will hopefully look a lot better. But, I suspect that lots of guys will be cutting back here and there until we see a rally. I'm a plus one on frogfarm's idea.
I sold some beans yesterday, and when I went to pick up the check at the elevator, the manager said that more than a few people "gave up" this week. (i.e. preferred the cash over the potential of prices to rise)
Local e-plant must have got some bought, basis went from -$0.13 to -$0.18 today.
So, Frytown, I guess I would say that everything is NORMAL for FEBRUARY! :) If we spend March going down, and fertilizer and oil go up, then you can repost that photo a month from now! :) | |
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corn market and my reaction...
