Corn Prices and your Cattle?

[Txwalt]

Supply and demand. Won't some farmers switch to corn. Or farmers that only grow some switch the fields to grow more. I'm thinking this will right itself. It may take a year or two but I think it will.

Walt

 

[aplusmnt]

Supply and demand. Won't some farmers switch to corn. Or farmers that only grow some switch the fields to grow more. I'm thinking this will right itself. It may take a year or two but I think it will.

Walt

Problem is that the ethanol plants are not working under the free market so it might be screwed up for a long time. Not only do they get subsidised per gallon but the government is making laws that say there has to be a certain percentage of ethanol in the fuel. Missouri I know passed a law that all gas has to have at least 10% ethanol in it.

When the government makes these kinds of decisions, requiring gas to have a more costly, less efficient ethanol added then uses tax payers money to prop up the system who knows if or when it will ever make corrections.

 

[3MR]

Just wondering if any of you feed distillers? With all these new ethenol plants going up I see big oppertunities for the feedlot. resulting in better calf prices? Don't know how many of you this affects?

And thought number 2 is... Alot of talk of guys getting out of the beef business... around here atleast. Where are our number of animals going to be at in a couple of years?

The problem with the distillers is the price on it is going up just as fast as corn. For the dairy that has been the major impact on their grain ration

dun

They want to recover as much of the added cost of the corn as possible.

We had our county marketing meeting last yesterday and an ag economist from Noble was the presenter. He touched on all the stockpiled corn and the over abundance of crop land being converted to corn, that with the huge possibility of the ethanal plants never actually materializing will leave us with a huge stockpile of corn. This should lower the price considerably, but we probably wont see it for a couple of years at the least.

 

[Cowdirt]

Yup! all these ethanol plants don't give a crap about us feeding cattle.
There is three times the amount of DDG on the market as 1 year ago when corn was 1.80 a bushel. Guess what! DDG is $60 a ton higher than a year ago. If you think there is going to be a bargain on DDG. Ummm, like I said, ethanol plants are going to make all the money they can while they can.

well they cant sale it if they price it to high.everyone knows when cottonseed hits $240 a ton everyone backs away from it.an goes to another feedstuff.

Right on, bigbull. Companies and individuals alike will charge what the market will bear. As folks look for alternatives things have a way of getting back on track. Too many unknowns in the world energy market to get overly alarmed about the impact of ethanol on the corn and cattle markets, long term. I predict that there will be plenty of corn next fall if droughts and natural disasters don't prevent it.