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Non-Cattle Specific Topics
Coffee Shop
$7 corn and $15 soybeans?
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<blockquote data-quote="larryshoat" data-source="post: 813636" data-attributes="member: 6773"><p>Good point,but how much crude oil does it take to make a ton of potash? My point is that sometimes it goes better when prices stabilize. If you're not very careful the inputs will kill you. I'm not the best marketer, usually use straight forward contracts, maybe an occasional HTA. The problem when you start to sell next years crop is how many bushels will I have? I've never had to buy a contract back, but I've been close before. When I plant an acre of corn my costs are fixed, I can and usually do sell ahead enough to cover those costs, where the problem comes in is when I get 100bu corn instead of 200bu. In that case I've sold the crop for what at the time looked like a good price, but I only have half the bushels to work with, the price goes up because the crop is short, the inputs for the next year go up and makes things kind of tight. In that case the crop insurance makes a tremendous difference.</p><p></p><p>Not trying to sound like an expert, but it seems to me that's what happens. There again I'm not the best marketer, but hopefully improving.</p><p></p><p>Larry</p></blockquote><p></p>
[QUOTE="larryshoat, post: 813636, member: 6773"] Good point,but how much crude oil does it take to make a ton of potash? My point is that sometimes it goes better when prices stabilize. If you're not very careful the inputs will kill you. I'm not the best marketer, usually use straight forward contracts, maybe an occasional HTA. The problem when you start to sell next years crop is how many bushels will I have? I've never had to buy a contract back, but I've been close before. When I plant an acre of corn my costs are fixed, I can and usually do sell ahead enough to cover those costs, where the problem comes in is when I get 100bu corn instead of 200bu. In that case I've sold the crop for what at the time looked like a good price, but I only have half the bushels to work with, the price goes up because the crop is short, the inputs for the next year go up and makes things kind of tight. In that case the crop insurance makes a tremendous difference. Not trying to sound like an expert, but it seems to me that's what happens. There again I'm not the best marketer, but hopefully improving. Larry [/QUOTE]
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$7 corn and $15 soybeans?
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