Corn Prices Now Over $6

[Anonymous-0]

We'll, it's happened, corn futures have passed $6. I now really regret contracting several weeks ago I wonder how many more ethanol plants will go bankrupt if this continues? Better stock up on corn flakes

 

[Anonymous-0]

If you sold several weeks ago you did real well. never regret selling if you realized a decent net return. Had you waited until today you may not have sold anyway.

 

[mj]

(quoted from post at 09:48:55 04/02/08) We'll, it's happened, corn futures have passed $6. I now really regret contracting several weeks ago I wonder how many more ethanol plants will go bankrupt if this continues? Better stock up on corn flakes

Yep and if you don't grow your own you probably won't be burning it to keep your place warm either ..... hard times are coming, I'm a-thinkin' :roll:

 

[paul]

Have you checked the price of fuel oil or propane? Corn burner sales are doing well.....

--->Paul

 

[mj]

(quoted from post at 11:58:28 04/02/08) Have you checked the price of fuel oil or propane? Corn burner sales are doing well.....

--->Paul

No, I haven't. I was just wondering how the corn burners compare to other types of energy IF a guy has to BUY the corn .... any idea?

 

[1936]

The ones who poneyed up start money for the ethanol plant by Middle town, Ia. Have to deliever 5000 bu of corn each year, but are doing well. The plant is running not like the one near Pekin, IL. The in the ground cost for corn is soo much more than wheat or beans is moving growers away from corn. In many areas you can double crop beans after wheat. A lot of big bin sales in the future. The country elevators are full boar on this idea. I see corn under tarp by the elevators last week. After the run on the banks it woun't matter what gas cost. I have been asked by a person in their 80's about pulling the money out of the bank. This to me is a silent under tow in the making? Childern of the depression can remember no money. Bear Stearn was saved by the gov to void bank runs. Will the gov save the hedge fund investers who have trillions of the sub prime loan paper work. 1980 Mopar was bailed out by uncle. History goes full circle.

 

[Jack a]

Contracts at that high price will mean nothing if the price plummets. Do you actually think all the elevators will pay your $6 contract when the actual price is $2? Hopefully that won't come to be but it could very well work that way.

 

[RobMD]

I think all this ethanol business + oil + crop futures + the markets at this time = disaster in the coming year.

 

[VADAVE]

Look I contracted at about $5.50 and sure hind sight says I should have waited; BUT I thought it was a fair price then and therefore it's a fair price now. That doesn't mean I don't kick myself for not waiting which is normal hindsight and greed.
As far a elevators not honoring contracts--jeeze who thinking here, a contract is a contract. Can you imagine the lawsuits if they refuse to honor the contracts THAT THEY SET THE TERMS OF.

 

[Bill(Wis)]

USDA says it takes 90 million acres of corn and 70 million acres of soybeans to see supply and demand balance out. 2008 will see about 87 million acres of corn and 74 million acres of soybeans. Do the math. This came about mostly because of the cost of fertilizer (N).

 

[Tradititonal Farmer]

When commidities take a sudden drop as they historically always have those obligated to high price contracts will go bankrupt unless they have some very deep pockets backing them.

 

[paul]

House here in MN is heated with heating oil (basically diesel fiuel) - Corn would be cheaper at $6 a bu, think $7 would still be cheaper than fuel.

I gotta get my wood burner replaced....

Elevators are not taking long-term contracts any more, they have to deal with margin calls when they do that, and that got real expensive. Don't ask me to explain it in simple terms, but as they try to offset their sales, they have to pony up more & more money as the price goes higher. It is possible some will go broke, most no longer contract 2009 crop any more, several are not contracting for the 2008 crop either - or basis went up a lot to cover the margin calls.

This leaves us farmers holding the bag - high prices, but we can't lock them in. What if prices drop in fall - would be natural with a good crop. We get heavily invested, folks hear about the 'high price of corn' all summer that we can't get, then in fall we get low prices again....

Will be interesting, could be a lot of good & bad coming from these prices. At least it is more fun that trying to figure out what to do with my $1.40 corn a few years ago.....

--->Paul

 

[Larry NE IL]

Those margin calls are for the guys that hold the forward sales thinking the price will go down.
Most elevators take your forward contract, add for storage and handling, profit and sell it in the market. I'd say that is 99% right now, since the markets are more volitile than old gunpowder.
Larry NE IL

 

[D&Dservice]

I dunno, its all goin to h ell in a handbasket, It wasnt long ago you couldnt give the stuff away!

 

[Jack a]

One word. Bankruptcy.

 

[Jack a]

Didn't read your answer. Looks like same thought.

 

[Eric SEI]

I agree, never regret making a profit.