McLeod County, MN | IALTO - 6/23/2012 08:57
That is a good point. Locally they have had opportunities to buy $4.60-$5.00 over that last several months, still barely over $5. Whether that is cheap enough I don't know but doubt they'd be locking in a loss.
They have to have somebody to "sell" it to them at that price. How many guys do you know that have contracted most of their expected production for that price? Me, and almost everyone I know has not contracted anything for 12-13 crop. I think it is going up another dollar, possibly two. Pollenation does not look good for the corn belt again this year. If E cant get the corn out of the farmers hands until price hits 6-8 and oil is plummeting they are going to be in a little trouble.
If managed money decides to pour a bunch of money in again I can see the price going up real fast and basis being wide just like in 2008. Then the market will harshly ration the grain and the prices will plummet. |
corn
