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WC KS | No matter who you forward contract to be an elevator, feed mill, feed lot or ethanol plant. IF you can not deliver specs then you are at the mercy of the buyer. So if your corn is too wet or has vomitoxen or no storage room. The buyer does not have to buy it. So buyer are unforgiving, so will let you roll into next season and some will just write off.
It really grips me that there are specialty crops that have an ACT OF GOD clause and Corn, soy and wheat buyers do not. Specialty crops do not have CBOT or KCBT to hedge into. Nor often do specialty crops have a large pool of commodity to sub against.
Trouble with Vomitoxin in an ethanol plant is so much not in the process, but in the end product DGS. There the Vomitoxin levels are concentrated about three times. Since the Ethanol plant does not know where the DGS may end up, they do not want to liable for any sick or dead livestock. | |
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Ethanol plant and refusing corn
