Rationing

[Boarsnest1]

Last month and the first part of this month, the $3-$4 corn got delivered. Profits are high all of the way around from cattle to Ethanol. Rationing has hardly begun yet.  The squeeze will come this summer when the corn is tough to find, by then some major rationing will be taking place. Now that we know what the report said, the old highs are a pretty good target, although that may be a very conservative estimate.  No need to pay for a high priced market "expert", no need to buy a pile of expensive options, no need to forward price much grian for this year, when march 15th comes around, I will buy a high level of insurance.    

[Jim Meade / Iowa City]

What part are you talking about 2010 crop and what part about 2011?

[idalivered]

there is still alot of 2009 junk corn that will be blended with this years great quality. Hard to get a handle on that one??? At some point the price will ration supply Just like  gasoline. at some point people are forced to use less. Why would anyone feed $6 corn to $50 hogs?At the least they will feed to lighter weights. I know of a couiple small cattle feeders that are reluctant to fill pens when corn is priced in the 6's.Even hay is a good value to sell as a commodity when other feeds get high and you don't have to haul the manure. Dairy has upside doen for at least 24 months and integrators can can cut back chicken production in a matter of weeks.  Ethanol margins are being supported by the high price of soys. If bean meal was below $300 ddg's would have to fall to equal their value. I think I just talked myself into selling jan. '12 corn.

[Boarsnest1]

Sorry, it made since to me when I was writing it. The last couple comments, I was thinking new crop. The comments prior to I was referring to old crop.