11-24-2012 06:03 AM
Getting a little post harvest bounce here...what is going on in the rest of the corn belt as far as actual corn prices being paid? This bid was for July 2013, positve basis.
Really makes soybeans hard to justify planting...on my better ground, the corn on corn really did not show a yield hit and the gross profit leaves beans in the dust, especially with my soybean yields.
Anyone ever hear of a rental clause that says you have to rotate corn with soybeans? One farm was rented that way and the top bidder dropped his bid rather than submit. I can see that you would not want continuous soybeans, but corn actully is good for the ground, in my opinion. I know one guy that planted all corn for 30 years and then rented his farm out. When the renter planted soybeans, he found a new renter. I guess to each their own.
11-24-2012 06:26 AM
$7.57 cash +7 over March
$7.65 March +15 over Mar
You are right about the profit margins of corn over beans BUT the profit in beans is great too.
Not so very long ago the gross income per acre was less than the profit margin is now (based on my operation and costs of production)
11-24-2012 08:28 AM
Arnfarm.......I fully agree that planting decisions "should" be based on the Dec corn/Nov bean futures contracts, but has always seemed to me that a lot of decisions are based on "current cash ratios"......I could even make the case that 1/3 to 1/2 of the cornbelt should be using September corn futures as the proxy since there will once again be tremendous early harvest opportunities in 2013.
BTW.....cash basis/bids at Cargill-Eddyville on 11/23
LH Dec +25Z 7.70
Jan +28H 7.78
Feb +33H 7.83
April +40K 7.87
May +45K 7.92
11-24-2012 08:36 AM
Did you see Ray Jenkin's May 2013 ethanol plant bid of $7.92??? you are south of the plant by a ways, I gather, and I am north...but all the corn that can be trucked there should be going. Should mean better prices for the farther out areas as time goes on, too and the areas with surplus corn are pulled in, too.