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| More corn is my thoughts also.
Inputs are "cheap" compared to last year.
Looks like the acreage battle is heating up in the wrong way. Soybeans are going down and corn is staying the same. Don't know how much longer the market will continue that way until corn tries to catch up.
If you are going to grow more corn do you lock the futures in also? I think so, but there is a lot of uncertainty out there right now.
What about 2011 sales? Looks to me that you can buy inputs now, take delivery of inputs, and pay interest on the purchase of the inputs and sell $4.50 corn against those cheap inputs and make some very nice margins. Inflation isn't as large as a concern if you can lock in both the cost and revenue side, in my opinion.
I'm bearish these markets, but they are offering some very nice margins IF I can grow an average crop for the next 2 years.
Another thought is: At what point, when margins are good by historical standards, is a person getting to greedy to hope for better margins?
Andy
Edited by Andy and John 1/9/2010 15:28
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Personal Acreage Battle Thoughts....
