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Senior Contributor

North Central Iowa Crop Tour

I spent yesterday looking at my farmland in Northern Iowa. I have never seen that amount of farms that are unplanted and there is alot of standing water in many of the fields. The corn that did get planted is only 2 inches tall and the stand count isn't even close to a normal 33,500 to 36,500 range.Total corn production in my part of Iowa will be way, way, down from even our drought reduced production in 2012. I would say this year is much worse than even the flood year of 1993.

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Senior Contributor

Re: North Central Iowa Crop Tour

I should add that we have alot of corn end-users in Northern Iowa with all the Ethanol Plants, feed mills, all the hog guys, and local elevators.These end users are going to need to import a vast amount of corn into the area to keep running. It will be interesting to see how they handle this, what is becoming a vast shortage of cash corn in Northern Iowa for the 2013 corn market.

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Senior Contributor

Re: North Central Iowa Crop Tour

some users will shut down, others will import grain ( SA ).

 2014 will be worse if the current crop does not amount to much.

 

 

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Senior Contributor

Re: North Central Iowa Crop Tour

Yes, I would not be suprised to see some end users shut-down this crop year.

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Senior Contributor

Re: North Central Iowa Crop Tour

Trucks and/or rail move corn every day from locations that have it too places that don't !!

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Senior Contributor

Re: North Central Iowa Crop Tour

Yes, your right on corn getting shipped around the country. Not sure on the per bushel shipping cost to bring alot of corn into Northern Iowa. Guess the end-users will find out.

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Veteran Advisor

Re: North Central Iowa Crop Tour

you should be thrilled.....the corn you are going to grow this year is going to be sold at a stronger basis due to lower supplies in your area...

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Senior Contributor

Re: North Central Iowa Crop Tour

Yes Ray, your right. Guess what the basis level for July/2013 corn is at a local Ethanol Plant today? $1.50 over Chicago currently. Believe that is an all-time High Basis Level for my part of Northern Iowa. Rumor has it will go to $2 over Chicago in the next 2-3 weeks. That's one helluva Basis Level, Plus, there is very little corn in our Tin Cans for most of the guys in my area. Almost everyone is sold out.

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Veteran Advisor

Re: North Central Iowa Crop Tour

So what is the plan for August and September at Golden Grain??

 

Can they handle rail corn??

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Senior Contributor

Re: North Central Iowa Crop Tour

Ray- I believe they are on a rail line, so that may help. I assume that since they are making an ok per ethanol gallon profit, they will do anything to get corn this summer. Since the DDG (Dried Distilers Grain) makes up a good part of there ethanol profit per gallon and DDG Prices have been good, I think they will do anything not to have to shut-down due to lack of corn. I know for a fact that they have all there land, equipment, and buildings paid for,so there Fixed Costs per ethanol gallon is very low. This makes a huge difference since the Fixed Cost per ethanol gallon can be as high as 50 cents per gallon.

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