# Corn prices



## somedevildawg (Jun 20, 2011)

At the start of the year, it looked like corn was gonna be at an all time high.....they're talking $4 corn now....perhaps even less, wow...makes $5.75 look real good on contract.....quite a few not contracted here, gonna be a rough go at that price....


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## Tim/South (Dec 12, 2011)

I was just talking about corn prices to a friend of mine.

Neither of us has heard much about ethanol lately. Are the ethanol producers not buying corn now? Seems like they could finally make affordable ethanol now.

I know there is a nice crop of corn being harvested. Is the demand just not there?


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## rjmoses (Apr 4, 2010)

The situation with corn and ethanol is this:

The EPA mandated that oil companies buy something like 15 billion barrels of ethanol in 2013. US gas consumption is using only about 12 billion barrels of ethanol right now because of improved fuel economy, less driving, etc.

The oil companies have to buy the ethanol so they want to increase ethanol from 10% to 15% or more in gasoline.

Ford, GM, etc., won't approve fuel with more than 10% because of damage to engine components, fuel line, etc. (Their warranties are voided if you use anything over 10%.)

So, by mandating a fixed amount, the EPA has put us all in a bind.

Your government at work.

Ralph


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## Fowllife (Sep 10, 2010)

The ethanol plants are still producing.

The main reason for the price swing last year was the drought & lack of production. The price drop this year is in part from the increase last year. A lot of livestock guys couldn't swing feeding $8 corn so they started to adjust their feed ration to use lower cost feeds.

I think every one knew new crop prices were going to drop when harvest started, the only question is how much more will then drop.


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## Tim/South (Dec 12, 2011)

Is ethanol still not the major consumer of American corn?

Last year for the first time in U.S. history, more corn was used for ethanol than for food.

Low corn prices are good for me. My feed bill is going down and cattle prices are up because of more affordable feed. I still have a bitter sweet feeling because our corn farmers have a lot borrowed and invested.

I know every aspect of farming is a venture and gamble.


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## somedevildawg (Jun 20, 2011)

Tim/South said:


> Is ethanol still not the major consumer of American corn?
> Last year for the first time in U.S. history, more corn was used for ethanol than for food.
> 
> Low corn prices are good for me. My feed bill is going down and cattle prices are up because of more affordable feed. I still have a bitter sweet feeling because our corn farmers have a lot borrowed and invested.
> I know every aspect of farming is a venture and gamble.


Yep still a major player, they want it as cheap as they can get it so good news for them. Bad news for the farmer....more corn planted here than I can remember being planted b4....I never saw a burnt field here in Georgia this year....really unusual, normally have to pump water, water, water....don't think they even moved this year. But still at around $800 ac to grow it here 200-250 bpa


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