08-26-2014 11:26 AM - edited 08-26-2014 11:36 AM
Well, maybe I'm assuming too much. But, it doesn't seem likely to store last year's crop and this year's (expected large) crop in the same bins. Maybe, there's more storage out there and maybe I've brought up a disregarding topic. I just think that the cards are stacked against those still holding onto old-crop corn, regarding finding higher prices for awhile. At some point, wouldn't you have to build more storage or rent more, if you're going to hold on and wait? And I ask that, considering this environment we are in right now.
08-26-2014 01:42 PM
Mike.... We mostly know to the bu as to how many bu of old corn there are out there.... USDA says that there is 1.1 bil..... Im sure that not all of that is being held by the farmers but it there none the same..... not a market factor except for whom ever owns it...... p-oed
08-26-2014 01:44 PM
Also.... I might add that local basis will be the decideing factor if an area has had more than a normal amt of old corn stored "On farm".... basis will reflect that big time....p-oed
08-26-2014 01:53 PM
Would have to have a good sized comeback in prices, but moving the corn into commercial storage is a possibility. With the slim chance of a significant rally, this could be a crap shoot. But it is a possibility to make room for the new crop by doing this and not immediately selling.
And who knows? Maybe the crop isn't quite what we expect. Maybe our acres are really less than thought. Maybe SA corn acres will be much lower. Maybe demand continues to rise. And maybe we have a lousy planting season. Lots of maybes out there.
08-26-2014 04:59 PM