Death comes to us all. Life's but a walking shadow | When you say: "$3.27 on board." Do you mean "your local cash price"?
Let me just mention this for all you fellows west of the Mississippi. Normally, New York plants about 1.2 million acres of corn and harvests about 1/2 of it for dairy cow roughage. Many dairy farms routinely harvest a certain percentage of their corn either as high moisture to feed or shell out and sell. This year, with silage yields running half to less than half normal (and low haylage yields as well) dairy farms will be forced to harvest a high percent of their corn as silage. Even now, from what I understand, very little local corn is going into the ethanol plant and they're using mostly Midwest corn brought in by train. Pennsylvania is facing a similar situation. The result is there is going to be much higher demand for corn in the Northeast than past years.
To give you an example of how crazy this thing might get here. Last week I sold my last load of corn for $4.07/bu. I thought it was going to the ethanol plant because that's where that broker always goes. Come to find out, my corn went to a local feed mill. The ironic thing is, I had previously called that self-same feed mill and asked what they were paying. Guess what, their price was significantly below what I received. So it looks like they ended up not only paying me more than they offered but paying the broker as well. I don't think these end users have fully come to grips with their situation yet.
What I'm trying to say is: Even though you may have a good deal extra corn, eventually there may be some unexpected demand as well. |
Corn price on January 1st
