grain prices up today

[rambler]

Corn, wheat, & soybeans all rallied up about 4.5% today. That is quite a jump up.

Speculators & traders & buyers are getting nervious about the weather in the breadbasket of the USA. We have been very, very cool, and very wet in large portions of the gain states.

Last year my corn was knee high by June 4th, it was tassling on July 5th.

This year, it is just barely on 2 leaves, about 3 inches high....

Beans are just showing out of the ground.

Many places have worse weather - too wet to get anything much planted yet. Getting too late to put corn in.

Big thunderstorms are rumbling overhead right now.

Argentina govt is putting a huge (40$!!!!) tax on it's farmers, so they went on strike & refuse to deliver any soybeans to port. It is a huge standoff - has been for a few months. No one is chancing sending ships to Argentina right now, they are coming to the USA and buying soybeans from us.

So, as corn prices go up, typically soybean prices go down, because the buyers figure we will end up with more soybeans planted, if it is too wet to plant corn.....

But, the Argentina strike is making our bean prices rise at the same time.


If you buy feed, be paying attention. The next week will be one heck of a roller coaster ride of grain prices, as the buyers sort out the weather issues in their heads and decide what this all means. We well may have much cheaper grains a week from now; but if I had to buy corn, I'd not drag my feet on it - this weather has people worried...........

--->Paul

[Minelson]

Thanks for the heads up Paul. Here in South Dakota we are having problems too with the rainy, cool weather. And some of the hay is ready to cut but it's too dang wet with no end in sight!

[DaleK]

Finished planting the last of our wet holes today. Took the day off and took the kids to the zoo yesterday, probably a quarter of the fields I could see as we got closer to Toronto haven't been touched yet. More like 10-15% in this area.

Got the tender filling up now to spray tomorrow.

I only wish the basis would turn here. -0.90 for NC corn, -1.20 for beans, obscene for wheat. Talked to a friend today who thought he was in good shape two years ago contracting wheat for this year, he only booked the price and let the basis ride. Historically the basis here had never been worse than it was then so..... but it got a lot worse. Unless the basis changes he's looking at delivering a good chunk of his wheat crop at 40 cents/bushel. Not a happy camper.

This is just the sort of reason that I'm going to a two year supply of the most storable grains.

.....Alan.

[Terri]

In Kansas the corn is a good deal SMALLER than it usually is, because of the cool spring. But, it is far enough along to bear well, it is just a little delayed.

I am hoping that the farmers in my area have a BUMPER crop, which will pump dollars into the local economy and make feeding my chickens more economical.

I don't know about the wheat, as nobody around me seems to be growing it this year. The fields look like they are only in corn.

[Up North]

I doubt we have hit the ceiling on grain prices yet.
Livestock producers who utilize corn and soybeans will have some hard choices to make. Some will shift to more of a forage based diet. Some will invest in more land and machinery and grow their own feed.
Some will Liquidate.

[rambler]

Reports are coming out that 4 million acres of corn are in peril for allt his cold & way too wet spring, in addition to lower yield on other acres. There is talk of 1 billion bushels of corn being washed away. (I feel those are extreme, knee-jerk numbers, but that is what grain buyers & sellers are hearing.....)

It will rain on Chicago this early part of the week. Those are the people that set grain prices.

In 2 weeks, corn & beans & wheat could be below any price we've had in the past 18 months......

But the smart money says prices are rising this week, and possibly violently.

Your feed sellers can use this to greatly raise your feed prices - even if they locked in grain prices for lower some time ago......

Pay attention to what is going on if you buy feed. Many posts on this site are very reactionary - food/ feed/ fuel prices went up last week, what happened, what do I do, I can't afford....

We are in a very rocky period on grain prices. Have a plan. Things can be all different next month, but right now....... Pay attention to what is happening.

--->Paul

[Lazy J]

Rambler:

Very good advice!!

The nearby contracts for corn and soybeans were up 16.75 cents and 20.75 cents, respectively. That is on top of the dramatic increases last Thursday and Friday.

Wet weather in the Midwest was not needed this year. At our feedstore we are changing the prices on our feeds every week to keep current with our input costs. It is frustrating to have to raise prices, but it is better to do it every week in small increments rather than holding off and giving a big one every month or so.


Jim

Originally Posted by rambler

Your feed sellers can use this to greatly raise your feed prices - even if they locked in grain prices for lower some time ago......

Pay attention to what is going on if you buy feed. Many posts on this site are very reactionary - food/ feed/ fuel prices went up last week, what happened, what do I do, I can't afford....

We are in a very rocky period on grain prices. Have a plan. Things can be all different next month, but right now....... Pay attention to what is happening.

--->Paul

[joyceb]

I know the price of flour and pasta on the weekly grocery list have gone up almost every week for the last few months. I don't buy a lot of feed in the summer months since the goats are on pasture and the chickens free range. But every couple of months when I do have to buy I notice the jumps in cost. I keep telling my husband we need to just let the back acre grow and cut it for grass hay.

Here near the Mississippi river valley in IL we have seen so much rain! It rained 4 or 5 of the last 7 days. The ground is so saturated & cool. For the first time in the history of my garden the green beans have not sprouted. I'm going to have to re-plant them. I didn't bother with sweet corn, but planted extra potatoes instead.... They are doing great. The peppers & tomatoes are growing very slowly though.

Strange days.