Corn prices

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ddg1263

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To my astonishment corn is still below 7 dollars a bushel this late in the season. With the horrible weather patterns earlier this year, I was certain that supplies would be low coming into October pushing corn above 8 dollars a bushel. However, every day I see corn below 7 dollars, I am beginning to wonder if we will not see a major sell off of the commodity. Right now it is priced at 6.78 a bushel. This could be a reflection of how ethanol subsidies may be discontinued because of our deficits. I don’t see how our government can continue on the spending spree no matter how important they are. And I don’t think ethanol is critical for our society to operate. Anyway, corn gluten is still expensive above 210 a ton, but corn is falling to about 250 dollars a ton. It seems to be to be a tight spread between the two products. I want the best for all farmers because I know how hard it is to make a living out of the ground, but this market is throwing me a curve ball for sure.
 

TexasBred

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CGF is about $280 a ton delivered down here. Corn has gone down just in the last week...will probably bounce back up. Demand is still strong.
 

inbredredneck

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ddg1263":1uxbhg7l said:
To my astonishment corn is still below 7 dollars a bushel this late in the season. With the horrible weather patterns earlier this year, I was certain that supplies would be low coming into October pushing corn above 8 dollars a bushel. However, every day I see corn below 7 dollars, I am beginning to wonder if we will not see a major sell off of the commodity. Right now it is priced at 6.78 a bushel. This could be a reflection of how ethanol subsidies may be discontinued because of our deficits. I don’t see how our government can continue on the spending spree no matter how important they are. And I don’t think ethanol is critical for our society to operate. Anyway, corn gluten is still expensive above 210 a ton, but corn is falling to about 250 dollars a ton. It seems to be to be a tight spread between the two products. I want the best for all farmers because I know how hard it is to make a living out of the ground, but this market is throwing me a curve ball for sure.
Where are you from that they have a $.15 plus basis on corn?
 
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ddg1263

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I just pulled the price from tractorhouse link. It always gives a snapshot of commodity prices. It is showing 6.78 a bushel....

http://www.tractorhouse.com/

The 210 a ton on gorn gluten was from a post this board a couple of days ago. I have not bought any in a couple of months so I am sure I am off. I actually wanted to see the discussion of what you guys are paying becasue I am going to have to make a decision on how to feed out this winter.
 

inbredredneck

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ddg1263":3ham5g36 said:
I just pulled the price from tractorhouse link. It always gives a snapshot of commodity prices. It is showing 6.78 a bushel....

http://www.tractorhouse.com/

The 210 a ton on gorn gluten was from a post this board a couple of days ago. I have not bought any in a couple of months so I am sure I am off. I actually wanted to see the discussion of what you guys are paying becasue I am going to have to make a decision on how to feed out this winter.
Thats fine but where are you from, that has a $.15 plus basis on corn?
 
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ddg1263

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I did not put any basis on the tonnage price.... I just divided 2000 lbs. by 56, which is about 35.71 bushels. And then I multiplied it times 6.78... it comes to 242 a ton... so I just rounded it to 250 a ton. I know the market will vary some... anyway; I did not include a .15 basis.
 

inbredredneck

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ddg1263":1cd29vnb said:
I did not put any basis on the tonnage price.... I just divided 2000 lbs. by 56, which is about 35.71 bushels. And then I multiplied it times 6.78... it comes to 242 a ton... so I just rounded it to 250 a ton. I know the market will vary some... anyway; I did not include a .15 basis.
Okay well you rounding up is equal to a $.15 plus basis and that is unheard of in these parts, all the corn you could care to buy is available at a $.42 minus basis. So you saying your corn is $250 a ton, that is considerably higher priced than the $230 per ton corn here. Just wondering what region of the country they were paying that kind of money at. That would be a good region to buy calves from.
 

terra8186

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We had a +$.40 basis here in Michigan a couple of months ago. I thought it was odd, but it was at all 3 local elevators.
 
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ddg1263

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Corn is opening even lower today as all commodities are. Many say it is a sell off because of Bernanke’s decision to shift treasuries around. They will be selling short term maturities and buying into the long term maturities to try and push long term rates even lower. Corn has been strong all year, but all of a sudden at harvest we see this weakness in the commodity price. I don’t think all farmers have the capacity to keep their harvest so a lot has to go to brokers.

Is the commodity run over? Everywhere I look people are having a hard time making it. This recession is real and has teeth. I don’t see how people can afford to eat beef nowadays. Hamburger is about all I can afford. I tell you my compass of where things are headed is broken because I was certain that corn had to maintain a high price with the bad weather and the increase in overseas demand. I thought 7 dollar corn was going to be cheap corn going into the fall, but it looks like I am wrong.
 
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