Corn

[imoldernu]

We live in corn country, so this is front page news: Bumper corn crop

Huge corn crop expected this fall? - LaSalle News Tribune - LaSalle, IL

Quote:

“I’d consider it to be a bumper crop,” said Harry McCune, Bureau County corn/soybean producer. “I think yields will be good even with all the wind damage we had earlier in July. I think it’s going to be a slow harvest, but people will be happy with their yields on the corn side. I think the beans are going to be exceptionally good as well.”

Three years ago, prices were as high or higher than $7.50/bu. Now, for Fall delivery $3.50 bu. and expected to go below $3.00.
.................................................. ..................................

Corn is the bigtime commodity in the US...

Quote:

Today’s corn crop is mainly used for biofuels (roughly 40 percent of U.S. corn is used for ethanol) and as animal feed (roughly 36 percent of U.S. corn, plus distillers grains left over from ethanol production, is fed to cattle, pigs and chickens). Much of the rest is exported. Only a tiny fraction of the national corn crop is directly used for food for Americans, much of that for high-fructose corn syrup.

25% of what you buy in grocery stores contains corn, in some form.

The soybean crop is also expected to be one of, or THE best ever.

While reduced prices in ANYTHING is unusual, it's just possible that we may see lower food prices. If not, this is the time to buy into the businesses that exist between the field, and the table.

We always look forward to harvest season, when, on our way to the lake, we can see for miles, instead of today's 8 foot+ corn stalks.

The corn fields back up to Walmart... the far edge of town, and the fields continue for the next 80 miles to the Wisconsin border. Only when you fly over Indiana, Illinois,Iowa, Nebraska and Kansas, does the enormity of the production of corn and soybeans become so awesome.

The next question will be, how long before the cattle herds that have been so decimated will again increase and make steak cheaper than caviar?

[meierlde]

Quote:

Originally Posted by imoldernu The next question will be, how long before the cattle herds that have been so decimated will again increase and make steak cheaper than caviar?

It should show up first in chicken and turkey prices. Then if they fix the virus issue that is killing pigs it should show up in about 9 months in pork, and finally in about 1.5 years in cattle. Cattle take longer to get to marketable size than pigs, and pigs take longer than poultry. (All live off corn and soy bean products)

[user5027]

When I first heard of the bumper crops this year I was thinking it was good news for farmers. Then I read that Deere has laid off employees. Deere anticipates weak demand for new farm equipment by the farmers since the crop prices are so low.

[foxfirev5]

Quote:

Originally Posted by user5027 When I first heard of the bumper crops this year I was thinking it was good news for farmers. Then I read that Deere has laid off employees. Deere anticipates weak demand for new farm equipment by the farmers since the crop prices are so low.

Yep, farmer's dilemma. If everyone has a great crop prices drop. If everyone has a poor crop prices soar. You only make great money if you're in a unique situation where your crops are great relative to others. ( simplistic analysis disregarding gov't subsidies, crop insurance, etc.)

[imoldernu]

My farmer friend isn't worried. He knew in the spring what he'd get for his crop.

Current News on Corn Crops, Corn Prices & Futures and Production

[foxfirev5]

Agreed. But these trends tend to last for more than one year. I moved to IL in the AG bust of the mid eighties. Land prices fell and corn had gone from about $6 to $1.60 a bushel. Corn crops were great but everybody was just getting by. I returned to my construction based career with a lesson well learned.

[retirementguy1]

Michael Pollan is a food author and a professor of journalism at UC Berkley. Check out The Omnivore's Dilemma. He writes extensively about corn subsidies and why corn is in everything. He also writes about many other things. One of my all time favorite food books.

[Senator]

Farmland prices have to come down, and land opportunities may present themselves.

[imoldernu]

Recent history