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S Illinois | That has a little tinge of “poor farmer” to it though. The market as a whole is not trying to buy at the lowest price. The market is finding the equilibrium between buyers and sellers. Only certain market participants are looking for the lowest price and they are not as widespread as one would believe. Your local ethanol plant is not sitting there going “oh we are going drive this market down so I can buy cheap”. They are looking at their margins and their plant operation to maintain throughput.
While it’s fine to think like this don’t let the idea of the bogeyman stop your from selling because it’s just as likely the market is being driven higher than it should also. Collectively as farmers we always view the market as looking for the cheapest price when there are just as many times the price is above what it should be. Put yourself in the shoes of the end user. How are you going to make money with that 56 lbs of corn you just paid $4 for. | |
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