|
| I was wondering what high priced grain would do to demand which has already been cut off at the knees. Even ethanol can't buy it all and it's a product that works best with cheap inputs. However, basis could take over to bring prices into reality. By now grain terminals are starting to see buying all but dry up during these rallys - most end users are hedging heavily every chance they get and making long term deals for alternative feeds. Once debt gets repaid and if we maintain generally good meat prices there is a good chance near $4 corn works (swag). So when funds and/or whoever start buying the markets heavily and the corn price goes to $8, the elevator is going to give us $3.80 because they can only sell it for $4. Probably means a new era of split marketing - with the elevator and with the board - of course that's a little like contracting with the elevator and then taking some cash and going to vegas - is that really sound business?
Thanks,
Pat | |
|