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Re: I got a hunch
ECIN answered it quite nicely. I am in business to make money. I am sure producers are not farming for goodwill.
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Re: I got a hunch
I am in business for the same reason, but $10 corn is not the answer. Besides, if it even reached that level (which it won't) only a hand full of us will have any to sell, which means we will be surviving on good ole crop insurance again. I don't think to many of us want that.
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Re: I got a hunch
Shaggy you are absolutely right. Just different views of the same market. We both can go long or short the market and regardless of the price we can either make money or protect what we have.
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Re: I got a hunch/$10 Corn, could afford the following:
A nice present for the Mother-in-Law= Diamond Watch Band.
A nice Diamond ring for the wife, the Diamond Engangement Ring I bought for the "REAL" Wedding/Engagement Ring was a little Cheesy when I bought it in the mid-level 1980's time period . LOL
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Re: I got a hunch
I'm not saying $10 wouldn't be nice to add to your farming resume, I just think it would be more destructive than constructive. Inflation would be epidemic, it would kill the meat industry, could almost see worldwide chaos. If you do read Larry Acker's newsletters, it could be the onset of his depression cycle.
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Re: I got a hunch
$10 Corn would only be 16 a cents a pound. LOL
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Re: I got a hunch
I did the math of $10 corn and $600 soybean meal over today`s prices on a #300 hog with a #222 carcass. It would be $58 more corn and $24 more bean meal cost, that would equate to 25¢ per lb corn and 11¢/lb or 36¢ more expensive pork at the meat counter. As a Jewish Lutheran I don`t eat pork, but a pork chop or slab of bacon being 36¢ per pound more would be a big deal??? I will bet that if we do have $10 corn the supermarkets would use that as an excuse to raise the pork price considerably more than 36¢/lb...and have little signs at the meat counter putting the blame on the farmer. It`s time that consumers start absorbing more of these costs at the supermarket. There is inflation that they don`t see they took a 1 lb box of Honey Bunches of Oats down to 13oz to keep the price from going up. But with meat priced per pound that`s harder to do, unless your butcher has a heavy thumb A pound is a pound the world around, but packages can get smaller.
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Re: I got a hunch
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Re: I got a hunch
Go interview them and report back. Look at the cattle on feed reports & the number of ethanol plants running at a screaming idle, ya I'd say their not hardly affected at all.
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Re: I got a hunch
Shaggy
1. if U get long futures or options = $$
POLL. if Corn prompt futures trades to 10 bucks, how many of you think it will stop there?