Corn Demand Question
Jun 15, 2009
I always enjoy your shows on the weekends with the comments from the many different people in the grain marketing world. Today's (June 13-14, 2009) emphasis was on the possibility of dwindling corn demand because the livestock people were in such difficult times. My question: is it the current price that is between $4.00 and $5.00 that is the problem or is it the $7.00 corn that they locked last year that is killing them? If it is the $7.00 corn, how are lower prices now going to help them? I, strictly a cash grain farmer, have had to chew through similar issues because I made the same mistake when I borrowed the money and paid for ammonia and DAP at over $1100.00 per ton. It appears to me that some of these large livestock producers have similar management problems as some of the other big conglomerates in our country. We don't seem to have any reserve, because every thing is actually run on some one else's money, i.e. the friendly banker. I know that we need the feed use to use the corn supply, but let us get it correct which pricing situation is the culprit.