Posted 5/14/2019 15:57 (#7497181 - in reply to #7497164) Subject: RE: Take PP on corn, don't plant to beans
SE Iowa, Lee County
That is my thought. We have to keep in mind there are many factors on these low prices and the biggest by far is oversupply simply from record production since 2014. The tariffs are contributing but not to the extent that some on here want us to believe. Swine fever is a factor as is the low price of ethanol along with good crops around the world (thanks to our help of showing other nations how to produce grain). Let's face it, the world is awash in grain. Maybe we should blame the plant breeders. Which is more profitable, 100 bu corn at $7 or 200 bu corn at $3.50? Less drying , less transportation, less storage costs. If there were to be another grain payment, it will not be announced any time soon. With the weather throwing a curveball, that talk may be premature. Prices will recover and China may come running back to the table before long. How many times has China cut a deal to buy our grain, only to back out and wait for the market to tank a bit and then come back in to buy lower? They play us for fools time and time again. I for one am tired of their games and applaud the President for trying to even the playing field a bit. This weather may be a blessing in disguise if grain markets start to respond to a possible short crop not seen since 2012.