This our friend's corn, Chris Pellow in Whakatane, New Zealand. We have been talking about New Zealand again as what they do that country seems to make more sense than what we are doing in America.
The corn market has gone crazy. Chris, your New Zealand corn might be worth $10 a bushel but there is a little obstacle. You are thousands of miles away.
Still, it has to be good for both of us, no matter the distance. The world needs corn, no matter where it is grown. They are bidding a mighty price again for ours, something like that short lived, high priced market in 95-96.
Local markets are paying over $4.30 US currency. That is a bit above the corn I sold for $4 in January. An Asian buyer contacted me and will pay another quarter on top of that for my non genetically modified corn. I sent him all the paper work today but that quarter eats up the transportation cost to his location on the river.
I will have to deliver wherever it is best for the combine and the guys hauling the corn to market.
Most farmers don't sell more than half their expected production upfront in case of a failure. Some do not forward contract at all but it is a good tool if you can use it.
That tool seems to be more profitable in soybeans where the market has dropped since the US report came out expecting one billion bushels carryout to next year's marketing season. It may be more so in wheat which has tested the $7 cash wheat price a couple of times.
It is a crazy market place for sure. Fertilizer dealers have already upped their price and I need a bunch of it. Gas is up to almost $3 dollars again, I hope this isn't a sign of inflation.
Farming was so easy and so predictable at $2 corn.
Did I say that?