How will producers respond to the increase in price?
Dec, corn is $4.40, Nov. beans are $8.98, will the corn & beans rallies persuade producers to try & keep planting corn? Will they plant beans if they decide not to plant corn?
What would prices have to be to get more corn & beans planted?
Re: How will producers respond to the increase in price?
Sure the market is saying it loves us today, but will it respect us in the fall? What I mean is my local new crop bid is $8.22 with a 90 cent basis I`m not scared of planting beans up to June 15 and my crop insurance isn`t afraid of insuring them at 100% of yield But if I had to mud them in the 20th of June, $8.22 plus all the tea in China wouldn`t be enough to promise to deliver them at that price.
Bottomline, I`d be afraid to contract anything that my insurance wouldn`t back me up 100% on. I`m broke now, but I`d really be broke if I couldn`t fill a $8.22 bean contract and the market started reflecting true value of a 0 carryover price of $16. No, I`ll plant as long as it`s economically feasible without a contract and roll the dice that in the fall the market will have their heads pulled out of their you know what`s.