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Veteran Contributor

Re: 60 cents a bushel cheaper?

If you take the offer in Odessa, Ukraine and add freight to Japan - or take the offer in Santarem, Brazil and add freight to Japan for November 2013  or December 2013 shipment it is $0.60 a bushel cheaper than if you buy the offer in New Orleans and add freight to Japan.

 

As far as their cost of production I think the variable costs are not much different--the big difference is in their land costs. 

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Veteran Advisor

Re: 60 cents a bushel cheaper?

Does Japan usually ship American corn out of New Orleans, or out of the west coast?

 

Not knowledgeable about this, and not sure that this would be an apples to apples type comparison without getting the knowledge.

 

For example, my understanding is that it is not unusual at all for South American soybeans to end up on the eastern USA coastal states due to freight. Cargill and others will refer to this when they are trying to drive the price down according to what I have heard. Again, I do not claim to be an expert, just being the devils advocate here to see what the facts are.

 

I have a hard time believing that the producers in the other countries are going to get excited about sub $4 corn unless the dollar has suddenly acquired a lot of purchasing power.

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Friend

Re: Floor Talk August 6

Hw to b an agent of farming I wnt to registere
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