Specs on futures on the price of corn

carellama · #1 07/14/12, 05:10 PM

I went to the feed store today and cow feed has already gone up 40 cents per 50 lb bag. They told me it has been going up 10 cents per day. Any idea how high you think it could go? I don't even want to repeat what I heard

edcopp · #2 07/14/12, 05:25 PM

It might be cheaper to keep the cow in the freezer, than in the barn.

rags57078 · #3 07/14/12, 06:09 PM

I know how dry it is in my area and it wouldn't suprize me if it hit $10

terri9630 · #4 07/14/12, 06:26 PM

Quote:

Originally Posted by rags57078

I know how dry it is in my area and it wouldn't suprize me if it hit $10

$10? Thats it? A bag of the cheap ranch mix is $14 here. I'll take your prices.

MO_cows · #5 07/14/12, 06:41 PM

I am actually surprised they aren't higher. Remember, last year millions of acres were flooded out. With crop shortages two years in a row, if we didn't have such an abundance to begin with it would be a lot worse.

rags57078 · #6 07/14/12, 06:59 PM

sorry I ment $10 a bu for off the farm corn

Lazy J · #7 07/14/12, 07:03 PM

There will be parts of this country that will have a high positive basis in the coming year because of localized corn deficiencies. The futures price might be signifinicantly less than what is being paid locally.

Jim

Bearfootfarm · #8 07/14/12, 08:23 PM

Quote:

Any idea how high you think it could go?

Prices go up every year BEFORE harvests get going good.

Then they fall when the crops actually come in

Lazy J · #9 07/14/12, 09:29 PM

Quote:

Originally Posted by Bearfootfarm

Prices go up every year BEFORE harvests get going good.

Then they fall when the crops actually come in

Not the past few years. I am afraid tht we will be in for some big surprises when the combines actually start to run, ESPECIALLY in the Eastern Cornbelt.

I just talked with a cousin of mine, he did a yield test and it said 30 bushels. Not what we are expecting, especially with the great start we had in April.

Jim

Old Vet · #10 07/14/12, 11:32 PM

Quote:

Originally Posted by carellama

I went to the feed store today and cow feed has already gone up 40 cents per 50 lb bag. They told me it has been going up 10 cents per day. Any idea how high you think it could go? I don't even want to repeat what I heard

It could go up to $50 per 50 lb bag. If that happens then nobody will be able to feed it to any animals. If it goes up to $10 per 50 lb bag other grains will be cheaper to feed. I now pay $8.50 per bag that is up 10 cents over the last year. Transportation is the biggest reason for price to go up.

bruce2288 · #11 07/15/12, 09:13 AM

Locally the price I could have contracted to sell my new crop corn has went from $4.60 to 7.05 in the last month. Wheat, soybeans and all kinds of hay are also up. How high will it get? Who knows. There are still many variables. Will it start raining, do export markets hold, how much ethanol production is cut, how deep is the culling of swine and dairy herds and chicken flock? Users and producers are both trying to figure out what is going to happen with the price.

Old Vet · #12 07/15/12, 02:54 PM

Quote:

Originally Posted by bruce2288

Locally the price I could have contracted to sell my new crop corn has went from $4.60 to 7.05 in the last month. Wheat, soybeans and all kinds of hay are also up. How high will it get? Who knows. There are still many variables. Will it start raining, do export markets hold, how much ethanol production is cut, how deep is the culling of swine and dairy herds and chicken flock? Users and producers are both trying to figure out what is going to happen with the price.

Contract selling is a good way to maximize you profit except if you over excitement your crop. And yes there are experts trying to figure out what the market will bear in the future.

Oldcountryboy · #13 07/15/12, 11:33 PM

Quote:

Originally Posted by Old Vet

It could go up to $50 per 50 lb bag. If that happens then nobody will be able to feed it to any animals. If it goes up to $10 per 50 lb bag other grains will be cheaper to feed. I now pay $8.50 per bag that is up 10 cents over the last year. Transportation is the biggest reason for price to go up.

A

Actually, feed prices will level off when farmers and ranchers can no longer afford to keep their livestock. After they sell out, there will not be such a demand and that might cause the feed prices to lower a bit.

Grocery wise! With the abundance of beef hitting the market, this should cause the sale of meat to lower in prices, for a while. But other things such as canned goods that have corn products inside will become outrages. Be expecting extremely high beef prices when the meat sells out tho. There will not be much left to replace it with.

Bettacreek · #14 07/16/12, 01:54 AM

From what I've heard, beef, dairy and chicken prices are supposed to be one of the first to rise. In two weeks time, 100lbs of feed went from $23.95 to $24.75. They want $19.50/100lbs of shelled corn. I was going through about 100lbs in two weeks, now it's looking like it's about 100lbs per week. Of course, most of my birds are growing out (including 37 cornish cross) and I added 21 POL hens and three roos (one will be traded off or sent to auction soon). It'll be a relief when the cornish cross are butchered out in three weeks... A huge reduction in feed AND finally a decent bit of chicken meat in the freezer. Plus, we're actually getting eggs now. I have about thirty five collected in the past four days or so since the POL hens were introduced. I wasn't buying eggs because I couldn't get decent eggs (I cannot eat store eggs) because everyone else is getting rid of their birds. I did score all of them completely free though, so I guess that's one nice thing about the rise in costs. I'm keeping an eye out for other animals that may be looking for new homes due to the rise. Not to add to my feed bill, but to add to my freezer.

tarheelbilly · #15 07/18/12, 11:38 AM

I just sold my milker this past weekend so that I could put that money into feed for the chickens and milk goats to get through the winter. One bag of goat chow is nearly 17 at the local tractor supply. Layena is now 16. I went to another town to check their prices on chicken/goat feed yesterday (different brands, though) and they are still at 13 per bag. Picked up 5 bags (I was in the car!) but I plan to go back Friday with the truck and buy more. The girl at Tractor Supply said that feed costs have been going up 25 cents or so per day. :-( I may sell a few more goats in a month or two to get us through.

Oldcountryboy · #16 07/18/12, 01:52 PM

My neighbor just sold all his cattle. He's spent years building up his livestock and recently sold them to his son who was going to take over the place and hopefully keep the stock going. But there's no pasture grass anymore and what hay they managed to cut in early spring has already run out. So they loaded up and sold them.

I haven't got to talk to him yet but I bet it's breaking his heart!

Oldcountryboy · #17 07/18/12, 01:54 PM

Quote:

Originally Posted by tarheelbilly

I just sold my milker this past weekend so that I could put that money into feed for the chickens and milk goats to get through the winter. One bag of goat chow is nearly 17 at the local tractor supply. Layena is now 16. I went to another town to check their prices on chicken/goat feed yesterday (different brands, though) and they are still at 13 per bag. Picked up 5 bags (I was in the car!) but I plan to go back Friday with the truck and buy more. The girl at Tractor Supply said that feed costs have been going up 25 cents or so per day. :-( I may sell a few more goats in a month or two to get us through.

I guess right now would be a good time to buy a cheap goat or two for the freezer.