what is going to happen to corn prices

[plbcattle]

What is going to happen to corn prices with everybody getting on this biodiesel kick. They are putting up plants everywhere and are starting to use corn that is for better,quicker growth but is not for human consumption. Will this drive up prices for corn we feed. We save on diesel prices and pay more for corn, go figure

 

[travlnusa]

My humble opinion:

Grain going to fuel will continue to drive up prices, more in some areas, less in others. This is a short term issue (short term being 2-5 yrs).

When switch grass (or fill in the bank) becomes viable, corn will drop back down, and quickly.

As stated, it is just my thoughts on the matter.

 

[somn]

I would like to think the ethanol and biodiesel industries will never have much of an effect on corn price. In areas where plants have already been built the local elevators now deliver the corn to the ethanol plant or the biodiesel plant instead of loading those bushels on trains to export out of the area. Some of the southern and western feedlots that depended heavily on midwest corn my pay a slight increase or at the very least it will take more telephone calls to find corn from alternative sources. But like I said the price locally has not shown an increase. I as a feedlot owner I worried about this very thing happening initially but it never happened. In fact it has also brought the prices of other feedstuffs down.

 

[MikeC]

What is going to happen to corn prices with everybody getting on this biodiesel kick. They are putting up plants everywhere and are starting to use corn that is for better,quicker growth but is not for human consumption. Will this drive up prices for corn we feed. We save on diesel prices and pay more for corn, go figure

I think just the opposite. Distillers grains will be/is a godsend for the cattle feeding industry.

 

[Scotty]

What is going to happen to corn prices with everybody getting on this biodiesel kick. They are putting up plants everywhere and are starting to use corn that is for better,quicker growth but is not for human consumption. Will this drive up prices for corn we feed. We save on diesel prices and pay more for corn, go figure

I think just the opposite. Distillers grains will be/is a godsend for the cattle feeding industry.

The man that feeds my bulls uses DDG. Very good results so far. I think it will go up short term only.

 

[Herefordcross]

Distillers/Brewers goes up here when the breweries slow down in the fall and then back down in the summer.

 

[preston39]

What is going to happen to corn prices with everybody getting on this biodiesel kick. They are putting up plants everywhere and are starting to use corn that is for better,quicker growth but is not for human consumption. Will this drive up prices for corn we feed. We save on diesel prices and pay more for corn, go figure

I think just the opposite. Distillers grains will be/is a godsend for the cattle feeding industry.

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mikec...,

I agree with you.

Just saw a recent report where 1/3 of corn used in ethanol production becomes animal feed. But, we do have a lot of acreage idle. As corn prices rise more will find its' way into production. Also, world demand is increasing because of population growth.

 

[somn]

For every 56 pounds of corn that enter an ethanol plant roughly 17 pounds of dried distillers grain leaves the plant, 17 pounds of ethanol leaves the plant, and 17 pounds of co2 leaves the plant. Those are rough figures but it gives you an idea. Most of the co2 leaves as a gas in tankers but some carbonation companies are being built alongside the ethanol plants and they are producing dry ice. I learned alot about ethanol plants one day while I was waiting when the syrup pump was broke down.