Corn Market 2016-2017

Backgrounding & feeding questions.
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1982vett
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Re: Corn Market 2016-2017

Postby 1982vett » Sat Jul 29, 2017 9:03 am

Son of Butch wrote:
Son of Butch wrote:7/14/16 Corn closed at 3.81
7/14/17 Corn closed at 3.65
trading range for the last 12 months has been from 3.41 - 3.92

Current price 3.80

Dec 2017 corn 3.88
July '18 corn 4.10

So operating interest and storage cost eat up the difference to hold for December or July?
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TexasBred
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Re: Corn Market 2016-2017

Postby TexasBred » Sat Jul 29, 2017 9:11 am

Son of Butch wrote:
Son of Butch wrote:7/14/16 Corn closed at 3.81
7/14/17 Corn closed at 3.65
trading range for the last 12 months has been from 3.41 - 3.92

Current price 3.80

Dec 2017 corn 3.88
July '18 corn 4.10



+/- the basis and delivery for the buyer.
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Son of Butch
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Re: Corn Market 2016-2017

Postby Son of Butch » Sat Jul 29, 2017 2:19 pm

1982vett wrote:
Son of Butch wrote:Dec 2017 corn 3.88
July '18 corn 4.10

So operating interest and storage cost eat up the difference to hold for December or July?

Maybe, but corn is already dried and in the bin by November so for most all who own their bins there is no extra
storage costs once it's in the bin... only spoilage risk

Main decisions are usually sell at harvest or hold and if so, hold for how long.
Some might want to hold until new year for tax reasons or sell/deliver before January for tax reasons

22 cents difference between 3.88 dec vs 4.10 july = 5.67% increase holding to july
5.67% in 7 months = 0.81% per month or 9.72% per year
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Re: Corn Market 2016-2017

Postby TexasBred » Sat Jul 29, 2017 3:50 pm

OR sell with deferred payment until after new year begins and buyer pays you interest on your money. But if you do it one year you have to keep doing it or wait for a year with a big loss to claim to years of sales in one year.
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Re: Corn Market 2016-2017

Postby Stocker Steve » Mon Jul 31, 2017 7:53 am

Local elevator is paying $2.85
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Re: Corn Market 2016-2017

Postby ddd75 » Tue Aug 01, 2017 6:19 am

US average annual production cost for corn: 625/ per acre.
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Re: Corn Market 2016-2017

Postby Stocker Steve » Tue Aug 01, 2017 6:59 am

250 bu / acre ?
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