It was thought in the spring, when planting corn, that it was like sewing gold into the soil. Corn futures approached $7 a bushel, and food prices soared as corn refiners hiked the prices for sweeteners and thickeners used in the food processing industry for things like soda pop and baked goods.
The folly of futures trading has played out once again, as the reality of actual corn being harvested by real farmers driving real tractors and combines, on real land--plays out.
Early season cold weather and drought stunted early corn growth, so the crop is smaller, some 8% by U.S. Department of Agriculture guesses, as well as later in maturing. The harvest could be delayed 1-3 weeks in many areas, maybe even bumping up against an early freeze and really decimating the crop.
Now corn futures have dropped like a rock, as have cash prices for corn. It is suddenly not so daunting to feed corn to livestock, and as an input for ethanol, a more affordable commodity.
Even the corn farmer is still due to receive a profitable price for his corn.
Just not the windfall he expected in the spring. Reality trumps dreams and guesses every time.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment