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Jim Meade / Iowa City
Senior Advisor

Corn from now to Dec

Was talking to my trucker and buyer this morning.  

The trucker says the processors like ADM and GPC have plenty of corn coming in on rail.  Their truck hours are short.  They pay good money but it's hard to get delivered.

The buyer says I can get 7.47 delivered ADM Cedar Rapids, but hours are 5-10 and the trucker is having a hard time working with that.  GPC in Muscatine is closed today and their hours have been 5-2 recently.  Not quite as good money and a little more freight, but OK if you can't get to ADM.

My buyer said wtih no names or hints that sales for Dec corn delivery on the books ranged from 3.92 to 7.17.  I have one load sold at 6.75.  Could have been better but sure could have been worse. 

I have two main questions on the 2012 crop.  1 is that I feel there will be a lot more corn planted in 2012.  The second is that with the election and debt issue, there will be pressure to disconnect entahol from the RFA so that blending is not required at certain trigger points.  That would cap ethanol prices.  Chinese and feed I'm not quite so wondering about.

Nothing like volatility down on the farm. 

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3 Replies
rayjenkins
Veteran Advisor

Re: Corn from now to Dec

Jim....here's the deal...

 

everyone expected to run S/SE/EC Iowa out of corn by early August this year, and planned accordingly....thus all the processors have big decks of corn coming at them they bought several months ago..

 

but lo and behold, the farmer held more old crop corn unpriced expecting that same thing to happen......and now there is quite a bit of corn moving from the farm primarily to the processor who still has the best bid even though basis has gone from +75U to +10U....

 

daily spots and sales are some of the best we've seen all summer....go figure!

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oldken157096
Contributor

Re: Corn from now to Dec

Howdy Ray/Jim..here i the east the farmer sold on every rally since Dec..local supply has dried up..ethanol bot local and Canadian origin all winter..then we sent lots of corn back to Ontario this summer..local plant is bringing in rail corn from IN..first time in their history theyve recieved rail..basis faded from +100 sep to +45 recently..FH Oct traded over triple digits..80% of corn plantings were done June 5-10..dont expect to see harvet till Nov.

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rayjenkins
Veteran Advisor

Re: Corn from now to Dec

hello Ken...

 

if there is any place that needs to pull a couple of rabbits out of the (production) hat this year, it's that eastern Indian/western Ohio region where a lot of dry mill capacity was constructed....your later planted crops might have a chance for that if you can get rain and keep the freeze day postponed well into October...

 

Our business unit has a wet mill in Dayton, so we fully in tune with what it's taking to keep spoon-feeding far western cornbelt corn into the east-----something that will continue for at least another year.....

 

So get ready to enjoy some more wild basis action in your part of the world..

 

Ray J

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