Corn price$

Had some corn delivered yesterday for the corn stove.  Corn is up to $3.89 a bushel!  Man, the economics of having a corn stove are seriously crunched now.  It’s still cheaper than natural gas, but I prefer to have a large margin rather than a small margin.

I hoping that the temperatures will warm up a little soon and we’ll be able to stretch this last batch of corn out to be the final delivery of the year.  We had some leftover last year and attacted wheat moths.  It was a mess.  We ended up putting the corn out with the yard waste program because we had to get rid of these moths somehow.  They were everywhere.

All for now.

FGLB

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3 responses to “Corn price$

  1. As ethanol production continues to ramp up, you’ll be seeing more increases in price for both the corn itself and some food products (mostly animal ones) that rely on it.

    For what it’s worth, though, natural gas is on it’s own Hubbert Curve similar to oil, so the price of that will generally be trending up in the coming years…

  2. It would seem that sometime soon the price of corn will cause CAFO operations some difficulty when compared to pastured products. I think this is good, and it can’t come too soon, but it will be interesting to see if something happens.

    Then again, farmers are known for overplanting when prices are high and crashing the market. I don’t think there is enough land for that to happen in this instance, but the extra acerage might curtail the increases. We’ll have to wait and see this spring and see how many new acres are planted.

  3. It doesn’t affect beef CAFO’s as much as you would think, because they’ve turned to feeding the ethanol by-product dried distillers grains & soluables. It affects hog and poultry producers more because hogs and poultry can’t handle a very large percentage of DDGS in their diet.

    I’ve heard that the ethanol companies can afford to pay up to $4.05 per bushel and still make money, as long as oil prices don’t come down too much. We’ve just finished our farm budget for the year and are planning to pay $4 for corn – double what we’ve usually had to pay. Naturally, we’ve had to raise our meat prices.

    The 2006 corn crop was the 2nd highest on record – and yet fell short of demand by 1.3 billion bushels. Plantings would have to increase at least 12 to 14 % each year for the next 3 to 4 years to keep up with ethanol demand.

    Not only does this affect the price of corn, but I believe it will also have a very negative effect environmentally. You’re going to see crop rotation abandoned in favor of planting corn on corn. You’re going to see CRP acres that pulled out and planted to corn.

    Furthermore, you’ll now see corn being bred or engineered towards the qualities the ethanol plants are looking for – probably at the expense of its nutritional value for both animals and people.

    Sorry for the rant, but I don’t see ethanol for the golden calf so many seem to.

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