gas and corn price 1961

[mwj]

Everybody is talking the end of the world on corn prices so I pulled the farm ledger out to check :shock: Corn was $1.06 a bushell and gas was$.262 per gallon in the farm tank. Now fuel is pushing $4 and corn is at $5 so that makes todays corn not very expensive in todays dollars. The livestock prices were good 1170lb angus cow was worth$172.57 or around $14.75 per hundred,light wt calves were bringing a whoping $25.50 :cowboy: Maybe it is not the end of the world after all since we all survived unharmed.

 

[Sir Loin]

Mwj,

So were do you think the price of corn is headed? Say, over the next year and are you going to bank on it?
SL

 

[mwj]

You tell me what the weather is going to do in the rest of the world and I will give you your answer :cowboy: The world drives our mkts. not just the locals. If you do not look at a worldwide view you will soon be parted with your money and livestock. You can have some control over the price of your grass but anything that will fit in a ship is subject to the wants and needs of the rest of the world. Our falling dollar is just icing on the cake to the overseas buyers.

 

[john250]

I remember the late 50's and early 60's as fairly stable times. Prices were low, consistently, and hundreds of thousands left for the city and industrial jobs. That was tough.
Today seems more uncertain. Prices are high, times are boom (except for these lagging cattle) and the price of doing business has gone crazy. But I'm sure Dad thought things were pretty uncertain in 1961.

 

[Sir Loin]

Mwj

You tell me what the weather is going to do in the rest of the world and I will give you your answer

OK, the weather will remain the same as it has been for the last 200 years.
It's not the weather that has driven corn prices up, it's ethanol.
And I've gone to the bank to bet corn prices will be down by fall when it will be needed for cattle feed.
Only time will tell if I am right.
SL

 

[mwj]

Mwj

You tell me what the weather is going to do in the rest of the world and I will give you your answer

OK, the weather will remain the same as it has been for the last 200 years.
It's not the weather that has driven corn prices up, it's ethanol.
And I've gone to the bank to bet corn prices will be down by fall when it will be needed for cattle feed.
Only time will tell if I am right.
SL

I hope your banker likes you because you have a lot of colatoral :tiphat: How do you explain the historic high price of wheat since it is not used in ethanol :???: Maybe you could take some of the banks money and go to Brazil and buy there corn, it should be dirt cheap since they use sugarcane to make there ethanol :nod:

 

[Sir Loin]

How do you explain the historic high price of wheat since it is not used in ethanol

Because the supply of wheat went down because US farmers planted (ethanol) corn to maximize their profits instead of planting wheat.
It's simple supply side economics. When the supply goes down the price goes up.
SL

 

[mwj]

Check and see if the drought in Australia shot the price of wheat up 2 years ago before corn started its climb. You really should read a newspaper or watch the news sometime 8) Did you check with the banker about buying some of that dirt cheap brazilion corn. You have to get it at ''feed'' price since they do not use it for ethanol Check back when you get the price.

 

[somn]

How do you explain the historic high price of wheat since it is not used in ethanol

Because the supply of wheat went down because US farmers planted (ethanol) corn to maximize their profits instead of planting wheat.
It's simple supply side economics. When the supply goes down the price goes up.
SL

You might want to check with the USDA and look into the acerage reports from 1999 to 2007 wheat acres have not dwindled. Short supplies in wheat are a result of demand for wheat not a result of additional corn acres.

 

[somn]

Everybody is talking the end of the world on corn prices so I pulled the farm ledger out to check :shock: Corn was $1.06 a bushell and gas was$.262 per gallon in the farm tank. Now fuel is pushing $4 and corn is at $5 so that makes todays corn not very expensive in todays dollars. The livestock prices were good 1170lb angus cow was worth$172.57 or around $14.75 per hundred,light wt calves were bringing a whoping $25.50 :cowboy: Maybe it is not the end of the world after all since we all survived unharmed.

http://www.wifeline.com/Cooperates/Coop ... 0High.html

Just enter the year you remember and the price at which you remember the price being to see if you are paying to much. You will see that your corn Should cost $7.35 and your gas should cost $1.82

http://www.measuringworth.com/uscompare/

It works backwards to.

 

[mwj]

Somn thanks for the links I will have to read up on what prices should be. What struck me as odd when going thru the old ledgers was the small differance in price between hogs and cattle! Sheep were by far the big profit makers if you could put up with them. The only way we made a go of it was telling the diferance between wants and needs

 

[mnmtranching]

US Wheat production.

Wheat acres peaked in 81-82 at 88.2 million acres.
By 88-89 had dropped to 65.5 million acres.
Last marketing season total US Wheat acres harvested dropped to 47.1 million acres.

Primary reason; Competition from other crops.

 

[somn]

US Wheat production.

Wheat acres peaked in 81-82 at 88.2 million acres.
By 88-89 had dropped to 65.5 million acres.
Last marketing season total US Wheat acres harvested dropped to 47.1 million acres.

Primary reason; Competition from other crops.

How about you provide us a link from a USDA web site showing us where you came up with the figure for harvested wheat acres at 47.1 million acres? I've reported only planted ones. All wheat planting in the US for 2007 totaled 60.5 million acres up 6% from 2006. 2006 plantings were up 1% from 2005 plantings. According to the USDA acreage reports Seems we continue to increase wheat acres not decrease.

 

[mnmtranching]

US Wheat production.

Wheat acres peaked in 81-82 at 88.2 million acres.
By 88-89 had dropped to 65.5 million acres.
Last marketing season total US Wheat acres harvested dropped to 47.1 million acres.

Primary reason; Competition from other crops.

How about you provide us a link from a USDA web site showing us where you came up with the figure for harvested wheat acres at 47.1 million acres? I've reported only planted ones. All wheat planting in the US for 2007 totaled 60.5 million acres up 6% from 2006. 2006 plantings were up 1% from 2005 plantings. According to the USDA acreage reports Seems we continue to increase wheat acres not decrease.

farmdoc.uiucedu/marketings/weekly.---- OR google up US Wheat production there's a awful lot of information.

 

[somn]

US Wheat production.

Wheat acres peaked in 81-82 at 88.2 million acres.
By 88-89 had dropped to 65.5 million acres.
Last marketing season total US Wheat acres harvested dropped to 47.1 million acres.

Primary reason; Competition from other crops.

How about you provide us a link from a USDA web site showing us where you came up with the figure for harvested wheat acres at 47.1 million acres? I've reported only planted ones. All wheat planting in the US for 2007 totaled 60.5 million acres up 6% from 2006. 2006 plantings were up 1% from 2005 plantings. According to the USDA acreage reports Seems we continue to increase wheat acres not decrease.

farmdoc.uiucedu/marketings/weekly.---- OR google up US Wheat production there's a awful lot of information.

How about we just use the actual acreage report from the USDA.

http://www.usda.gov/nass/PUBS/TODAYRPT/acrg0607.pdf

 

[Sir Loin]

You all need to read this a little more carefully to see if you can agree on the numbers, as both numbers are there.

All wheat planted area is estimated at 60.5 million acres, up 6 percent from 2006. The 2007 winter wheat
planted area, at 45.1 million acres, is 11 percent above last year and up 1 percent from the previous estimate.
Of this total, about 32.4 million acres are Hard Red Winter, 8.80 million acres are Soft Red Winter, and
3.91 million acres are White Winter. Area planted to other spring wheat for 2007 is estimated at 13.1 million
acres, down 12 percent from 2006. Of this total, about 12.6 million acres are Hard Red Spring wheat. The
Durum planted area for 2007 is 2.23 million acres, up 19 percent from the previous year.

Source:http://www.usda.gov/nass/PUBS/TODAYRPT/acrg0607.pdf
And might I suggest you look into yield numbers instead of planted numbers as a lot of "planted" wheat is used for hay and pasture especially in times of drought and not all years have the same yield per acre.
Nice job on all the research people! An enjoyable read. Keep those URLs coming. :tiphat:
SL

 

[somn]

You all need to read this a little more carefully to see if you can agree on the numbers, as both numbers are there.

All wheat planted area is estimated at 60.5 million acres, up 6 percent from 2006. The 2007 winter wheat
planted area, at 45.1 million acres, is 11 percent above last year and up 1 percent from the previous estimate.
Of this total, about 32.4 million acres are Hard Red Winter, 8.80 million acres are Soft Red Winter, and
3.91 million acres are White Winter. Area planted to other spring wheat for 2007 is estimated at 13.1 million
acres, down 12 percent from 2006. Of this total, about 12.6 million acres are Hard Red Spring wheat. The
Durum planted area for 2007 is 2.23 million acres, up 19 percent from the previous year.

Source:http://www.usda.gov/nass/PUBS/TODAYRPT/acrg0607.pdf
And might I suggest you look into yield numbers instead of planted numbers as a lot of "planted" wheat is used for hay and pasture especially in times of drought and not all years have the same yield per acre.
Nice job on all the research people! An enjoyable read. Keep those URLs coming. :tiphat:
SL

Sir loin a acre is a acre regardless of it's use. Wheat supply has gone down because of consumption not loss of acres planted. Yield of any crop is controlled by weather and growing conditions not ethanol.

 

[somn]

You all need to read this a little more carefully to see if you can agree on the numbers, as both numbers are there.

You may want to get your eyes checked as there is only one number in the report 60.5 million acres of wheat planted.

 

[Sir Loin]

Somn,
Re:

Sir loin a acre is a acre regardless of it's use. Wheat supply has gone down because of consumption not loss of acres planted. Yield of any crop is controlled by weather and growing conditions not ethanol.

True, true and true!
What's your point?
SL

 

[somn]

Somn,
Re:

Sir loin a acre is a acre regardless of it's use. Wheat supply has gone down because of consumption not loss of acres planted. Yield of any crop is controlled by weather and growing conditions not ethanol.

True, true and true!
What's your point?
SL

Well it is obvious ethanol has not decreased wheat plantings or wheat yield. Why then the high price for wheat? Maybe a supply problem huh? But yet everyone wants to blame ethanol for high grain prices including yourself.