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SW WI | Boone, I have been thinking about your call to keep planters rolling after the insurance date to ensure supply. You seem very concerned about the end users...I do not want to see them decimated. But......shouldn’t they be locking in price of their input right now, assuming they haven’t already?
I can remember Smithfield in 08 complaining about rising corn and meal costs, and my thoughts were “don’t you have a guy or gal to manage risk”? I had to manage my meal risk when I had hogs. I also considered strategies to lock in my own home grown corn price so then I could work on overall breakevens on the actual hogs.
Just a short month ago when this board was beside themselves with the low prices, some here said “you need to manage risk better”. I completely agree. And now is the time for an end users to manage risk to the upside. I actually will do it for my cattle.
Now all of that is fine and I do see a point of the actual physical not being there. Yes, I agree that some of these end users, you don’t just mothball for a few months or a year and pick right back up rolling on....not that simple. I don’t want to see demand damage to another segment of who we sell to but this thing could be a historical event, I don’t see anyone not effected in some way. | |
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Rumors of increased PP payments
