|
Jesup, IA | A significant number of the "new" corn acres that got us to 95-97 million acres require >$5 corn to make it worth planting. Acreage will diminish without price.
Chart analysts who like to point to the long term lows of $2-$3 corn forget that it included a multi-decade period where the government paid farmers to grow corn below the cost of production.
I'm sure a big crop could take us back to those prices, but farmers are not going to plant enough acres to raise 14bb year after year if the price is sub $4. Manage your risk accordingly. I'll use any run-up this winter to create a floor if the bottom falls out next year.
I have said enough about poor conditions in my area of Iowa, but at the risk of repeating myself, I believe the snowed on, mudded in, then flash(?) droughted WCB will have much different results than this early planted, early harvested corn in the ECB. Beans will be significantly poorer than the trade is talking now.
$6 is not pie in the sky DJM
Edited by Ben Riensche 9/8/2013 20:31
| |
|
|
Tell me why $6.00 corn is a pipedream for 2013.
