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Jim Meade / Iowa City
Senior Advisor

Any Sep Corn Premium?

My buyer said that this year there was so much old corn in farmer storage that there was no typical Sep premium.  Those who planted a short season corn for Sep delivery didn't get their usual reward.

 

Are you seeing that in your area?

I wonder, with more on-farm storage, is the Sep premium perhaps a thing of the past as more farmers hold corn in their own storage?

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5 Replies
sw363535
Honored Advisor

Re: Any Sep Corn Premium?

Warm and dry August and early september brought harvest on three weeks early... That had more to do with limiting the premium for early corn than anything...  We have harvested dryer corn throughout harvest.  It finished extroardinarily fast..

 

There was very little corn in storage when harvest began..  

 

What a disconnect,,,, we read articles about how tough things are on the farm with lower grain prices,,, then here statements about how much more corn is in "farmer"storage at the end of the year.   One or the other is a lie.....  It takes nearly 60% more bushels to pay most every bill-- less fuel-- than it did 18 months ago. Yet buyers are willing to say grain isn't moving, and larger amounts of grain in farm storage.... How many more bushels does it take to finance a corn crop now than 18 months ago???

It is why the corn market is struggling to hold or gain ground during harvest....  And china is still buying our "Commodities".

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WCMO
Senior Advisor

Re: Any Sep Corn Premium?

Last I heard -- China's general economy hasn't "reduced", it has been growing at a reduced rate of growth. 

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roarintiger1
Honored Advisor

Re: Any Sep Corn Premium?

Huh?   Buyers that complain about grain not moving simply need to raise their prices.   They are slow learners.  They still will try everything they can to scare the bushels off the farm with "the sky is falling" stuff.    Smiley Wink

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bkadds
Advisor

Re: Any Sep Corn Premium?

But all the piles... All I can say is just perhaps farmers are not as in the red as some would like to believe. Big guys can outlast the farmer to obtain grain as they have notes to pay... How long now have we been hearing this? I believe farmers are better off that a lot would like to admit.
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Jim Meade / Iowa City
Senior Advisor

Re: Any Sep Corn Premium?

BK, that is an interesting observation.  My feeling - granted, not based on much factual data - is that local farmers are cutting back on many expenses.  A local extension agent said there were a couple of "retirement" sales that were really more like a bankruptcy sale.  

There probably are a number of farmers in pretty good shape.  If they didn't need to sell, then I'd think we'd need a premium to get their grain.  

 

My local buyer says there is still old crop grain in the bins.

 

Maybe this is regional in nature.

 

 

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