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Senior Advisor
Jim Meade / Iowa City
Posts: 2,506
Registered: ‎04-30-2010
0

Corn in Tight Hands

I had a chat with a buyer in eastern Iowa the other day.  He says that based on his discussions with his clients, there is a lot of corn in farmers bins.  Farmers are busy planting and don't need the money, so they are sitting very tight.  He thinks that after beans are planted, old crop corn will start to move and the baiss will widen substantially.  Farmers have more and more on-farm storage and are not afraid to lock the door.

He said quality is good and test wieghts are high.  He is not seeing any loads rejected for damage. 

Senior Advisor
kraft-t
Posts: 10,784
Registered: ‎05-10-2010
0

Re: Corn in Tight Hands

A dollar drop will loosen their grip.

Senior Contributor
Buckley_HF
Posts: 165
Registered: ‎12-29-2011
0

Re: Corn in Tight Hands

If I was a buyer that's exactly what I'd be telling anyone and everyone that would listen. As a producer I don't put my credence in that bs. Sounds like scare tactics. But according to the USDA I'm wrong. Maybe farmers are sitting on all those 850 mbu.
Senior Advisor
Jim Meade / Iowa City
Posts: 2,506
Registered: ‎04-30-2010
0

Re: Corn in Tight Hands

Are you talking about an end user, such as Cargill, ADM or such, I can see  your point  But this guy is a local buyer who reships to the big end users.  He'll probably get my corn in the end, anyway, and I do enough business with him that if he misrepresented the facts and I caught on, it would cost him my business.  So, what his benefit by lying to me?

Veteran Advisor
roarintiger1
Posts: 1,593
Registered: ‎04-29-2011
0

Re: Corn in Tight Hands

Jim, Maybe he has corn already contracted to someone else and doesn't have enough to cover himself.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"