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marketeye
Veteran Advisor

Corn not overly profitable

Traveling through northern Illinois today (Sat. May 5). Dale Much, a Caledonia, Illinois farmer is nervous that corn prices are not overly profitable. He says he will need some better pricing opportunities than what he is seeing here at planting time. I visited Much, as he was preparing his 24-row planter.

 

Video=Rained Out in northern Illinois.

 

Will this setback in corn prices keep you from selling out of old-crop? Or, do you need to sell to have more bin space? 

 

Thanks for sharing your risk management practices,

 

Mike

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9 Replies
marketeye
Veteran Advisor

Re: Corn not overly profitable

Some corn is up but it has taken as much as three weeks to come up. Here are a few shots of what I have found north of I-88 in northern Illinois.

 

Emerging corn.jpg

 

Word was this corn took three weeks to come out of the ground, located outside of Rockford.

 

Weedy.jpg

 

There are plenty of weeds to go around for the no-till ground. But, the tilled weed emergence not seen yet.

 

Funny sign.jpg

 

And of course, if you see a sign like this, you have to stop the car, don't you?

 

Mike

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marketeye
Veteran Advisor

Re: Corn not overly profitable

Acreage update: Informa issued their May acreage and production estimates on Friday. They pegged spring wheat acres at 13.476 million, up from USDA’s estimate of 12.0 million. Total corn acres were 96.124 million, compared to USDA at 95.9 million. Soybean acres were 75.822 million vs. USDA’s 73.9 million.
They also estimate total winter wheat production at 1.656 billion bushels; hard red winter at 1.008 billion, up 228 million over last year, and soft red winter at 421 million, down 37 million from last year.

 

 

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rayjenkins
Veteran Advisor

Re: Corn not overly profitable

Mike----we have an extremely wide range of production costs and profit opportunity in row crop production today. The ultimate variable is the cost of access to land. On one end, you have folks whose "land cost" is their property tax payment each year ($15-35/acre)---and on the other end you have some folks renting almost all of their land, and might be in one of the "high cash rent districts", so they could have an average land cost of $300-400+....

 

there will be a lot of folks selling $5 corn who are in the maximum tax credit.....just not everyone......Econ 101 of commodity production says the long term price IS the cost of production.....it's just not much fun when we go from $2-3 above the cost of production and start drifting back toward the center....

 

Ray J

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ray h.
Senior Contributor

Re: Corn not overly profitable

    Cure for the drifting back to cost of production levels.Take about 7 million of these corn and soya acres and put them back where they belong,hayffields!

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roarintiger1
Honored Advisor

Re: Corn not overly profitable

ray h, just how much money and soil does one lose to come to that conclusion?

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ray h.
Senior Contributor

Re: Corn not overly profitable

    roarintiger 1 ,just know this,high prices cure high prices,low prices cure low prices.The low price cure is just generaly slower than the high cure unless mother nature helps out some where.

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kyu2852570
Veteran Contributor

Re: Corn not overly profitable

Sold corn, have revenue insurance, and have puts a good drop and I'll be netting $7 corn possibly $8 it's all a gamble could end up with $5 corn and when the market is $7 too

steeringwheelholder
Senior Contributor

Re: Corn not overly profitable

I've sold about 10% of my new crop corn for $5.50. I'm 50% sold on fall beans for avg $13.20. I will probably sell more corn at $5.25 as I see monster crop potential looking out over my local area. The bear part of me says sell now while corn still begins with a "5".
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jrsiajdranch
Veteran Advisor

Re: Corn not overly profitable

Really? NOT OVERLY profitable?  Hows about the farmoing industries who haven't even been profitable? Your whinning is gonna fall on deaf ears.

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