Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

Where’d the corn go?

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On the farm report this noon, the agri-economist said (for what it’s worth) that 3/4 of this fall’s corn crop has been pre-sold at under $3 / bushel. Plus average yield per acre assumptions are the highest he’s seen, plus acres planned to be planted is the highest in decades. Sounds like a whole lot of perfection is built into the plan. (Well laid plans of mice and men.)

I don’t know about your part of the world, but we have 3″ of snow on top of soupy, cold spring ground. To get the kind of millions of bushels in the new crop necessary to “meet the numbers” you need to plant long season corn. (The longer it grows, the more the kernels can flesh out.) If it doesn’t warm up and dry out soon, farmers in the northern corn belt will have to plant lower yielding, shorter maturing corn varieties or swap to other crops (typically soybeans.)

Throw in the fact that all these new ethanol plants will need SOMETHING for feedstock, I just might tear up my backyard and plant some corn.

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Written by heyercapital

April 11, 2007 at 11:44 pm

Posted in Business/Econ

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