panic

[cottonpicken]

By the sounds of it weather is creating panic in the corn regions of the us.

Farmers will not be able to deliver against their contracts and will be forced to cover.

Maybe corn will blow through 8.95.

Fear,fundamentals and technicals all working for us for the first time.

Get strapped in.

[agstar77]

Could be an event of epic proportions according to some analysts, in the U.S. Either an embargo on corn exports or a cutback in corn for ethanol is very likely, if projected trend yield keep dropping. You can't short food and feed. Folly of ethanol without contingency for crop disaster. We may be facing our own problems if the cool weather continues. Either way , swings in markets are only going to get more extreme.

[ColevilleH2S]

There is no way the Americans would ever enact a export embargo. The party that did that wouldn't get re-elected in a corn state for 50 years. I can see quite a few Ethanol plants closing down though.

or the U.S. importing corn. Now that would be something.

[bucket]

what is the impact on our markets in canada?

Does this mean the ethanol plants running on wheat are more viable? Terra grain at belle plaine has a couple more years of $4 wheat coming to their plant.

Doesn't this mean wheat should become more valuable??

?????

[charliep]

Note the impact on the livestock industry. Will go through a bit of math but $7/bu corn likely will equate reasonably closely to $7/bu Alberta feed barley. That equates to $330/tonne (realize I am rounding up but makes my math easier) or 15 cents/lb of barley. Assuming a feed conversion 850 to finish of about 7 lb grain/lb of gain, a feed lots cost of gain is $1.05/lb. No other costs included.

[agstar77]

Nothing is out of the question, just remember that the Pres. is elected in the non corn producing states. Even with an embargo , prices would be high.

[cottonpicken]

Belle plain has how much contracted grain at 4 dollars?Some farms went a few years out on thier wheat?

In the imortal words of Mr.T:

"i pity those fools"

Any hick up anywhere this year was going to really help the grains.

But the hick up is in the most important crop in the world.

The us corn crop.(or is rice more important?)

As corn soars the trading sharks will be jumping on any grain that looks weak.

[bucket]

that ethanol plant has a pile of wheat on the ground that even the cwb would pay close to 8 bucks for. Either they are reselling that wheat or they are damn fools because the plant is not running yet. In theory they could probably finance some of the plant with the increase in prices of the grain.

Those boys really helped out the farmer. They should be selling ice to eskimos.

[cris]

Demoine and cedar Rapids hit National news last night. Crazy water, You only see what they want you too, But the old Girl (89) said she had never seen flooding like this before.

[furrowtickler]

Panic starting to set in here, from lack of moisture. Areas west of here are getting moisture now but east and north are still bone dry. Maybe today?
BTW - panic for the clowns who signed cash rent for over $60/ac or bought land for $1000/ac this spring. Some areas now at over 45 days with less than 2/10ths rain.