Filed under: Corn, Farm, Soybeans | Tags: Corn, ethanol, farm, marketing, Planting, selling corn, Soybeans
Here I am looking over the markets for the week, and it hits me, they really want my corn! How do you know? When end users are paying over Chicago Mercantile Exchange Futures Price, they need the corn NOW. I can get 16 cents over Chicago at the Co-op, which they will grind for livestock feed, and 25 cents over at the ethanol plant.
Looking back I find that the shift came about a month ago, that’s when our local co-op started paying Chicago price for corn. They were still paying 51 cents under Chicago for soybeans at that time. I had gotten so used to the Co-op paying 15 cents or more below Chicago that I had not even paid it any attention. This is big news. It means that someone needs corn now and is not getting it.
Are we running out of corn? Not likely, but it could be just a bit short, and farmers are planting, so their minds are elsewhere, thus some money must be paid to shake loose some corn. Now we will find out if there is corn to be purchased in the countryside. Me, I’ve rewarded the market for its higher price by selling some for June delivery, others could be also. I don’t have much left to sell, but this is too good of a price to miss.
Planting season is typically the last gasp of the market. Most likely prices will be down from here to harvest, unless we are really short of corn on the farm, then who knows. Still I’ll keep a sharp eye on the market. I still have a few bushels left to sell, just in case.