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Central Illinois | It’s not as easy as you think for an end user to just lock in cheap corn. I grow corn and buy corn to feed both. Right now it is real easy to say should’ve bought a years worth of corn to feed last July, I did consider it but decided I didn’t want to tie up that much money when everybody’ said corn would have a 2 in front if it before long. Cattle margins are always tight enough it is not as easy as one would think to write a check for a years worth of corn ahead of time, I would assume the same goes for ethanol. . Same thing goes for fertilizer and other expenses to grow corn, a year from now it might be easy for someone to say you should’ve bought 2 years worth of nitrogen last Year when it was cheap but it is tough to tie up all of your money at the time.
Edit to add: I’ve tried options on corn before to lock in desirable price w/o spending all of my money on the physical and that had only ever added to my actual price paid for feed as the options expired worthless. It ain’t as easy as it sounds to outsmart the market!
Edited by Long legs lashank 1/25/2021 21:24
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Correct me if I’m wrong
