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Advisor

drought and fert. prices???

I've no idea how large the "dry spot" is in (kentucky, illinoi, indiana, missouri etc.), but if the crop is nothing or much less, wouldn't this cause all these producers to make substantial P and K cutbacks? Conventional thinking is that these nutrients are still there causing a big drop in fall applications? Unfortunately, our local coops have supplies bought and paid for as a normal business practice to insure supply for our good patrons. They are painted into a corner. This could get interesting, but heck it's Sunday morning...

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Veteran Advisor

Re: drought and fert. prices???

They can always truck it, where it rained, although they may take a loss on it (or may not, depending on prices).

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Veteran Contributor

Re: drought and fert. prices???

Yeah but they are selling us inputs based on the futures markets. We will not be buying this falls NPK for this burnt up crop but for next's years big crop. They know we are all optimists.

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Veteran Advisor

Re: drought and fert. prices???

I called about fall fert prices a few weeks ago and the manager said they had withdrawn their prices, depending on high corn goes. You will pay more this fall, not less. Figure the price of corn x yield and take 30% of the gross. The fert guys  will try to extract that from you for their "fair share". That is the game that is played.

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Honored Advisor

Re: drought and fert. prices???

I doubt if the 3 fertilizer supliers worry about "demand destruction" due to higher prices, then "short" their own product and post on their "Fertilizer Forum" how DAP andPotash are going down "lower fertilizer prices!! Smiley Happy)))". Total 180 from the mindset of some bear farmers...i'm waiting for Faust to show up and sell them some shovels. Smiley Happy
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Senior Contributor

Re: drought and fert. prices???

BA they could get  a big surprise when sales drop in the dry-belt areas. Prices for corn may be high but cash flows will be low due to sub-yielding corn. Maybe they will try the seed pricing strategy and create price zones where the farmers did well they can afford to be robbed, right?

 

If they really want to be our profit sharing partners they should offer refunds when their expensive fertilizer programs don't work so well. Unfortunately they think they operate on a one way street that leads to their bank.

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