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Alton, Ia | It might be to the grower but the percentage impact to the user should not be much. Even at today's prices 80K kernels of corn is worth ~$3 as #2. I don't know what growers get for a premium, I imagine it has to be significant due to all the extra work involved with corn especially, so let's say $6/80K unit to the grower. What makes the bag get up to $175-200? All the processing costs, marketing, R&D, profit, distribution, field support, etc. Those costs are not linked to the corn price. If prices rise by more than a few percent, it's either due to other costs rising, or they are charging more becasue the demand is there. Can't really blame them for that, are'nt we doing the same we sell at higher prices? But attributing a 50% rise to the increase in # 2 is Blowing Smoke
Edited by Oliver1 2/7/2007 11:12
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Just my opinion ,of how it will go.
