|
SC Iowa | When energy (corn) or protein (soy) are "cheap", that is when you see the greatest relative difference between co-products such as DDG, corn gluten feed, soy hulls, etc and corn/soybean meal, etc...
As corn and soymeal rise, there tends to be some compensatory gain on the value scale, resulting in the situation now seen..
In addition, you have folks placing value on "fiber" to replace high cost forages and more emphasis on the protein portion of DDG's than when soymeal was in the $200-225 range...
As more and more folks become comfortable with feeding co-products of ethanol production, the demand at any given price point is higher than when it was "all brand new" to the industry...
As much as anything, it's just a market reaching a different equilibrium with a new set of inputs...
Ray J | |
|
Wanna throw the phone against the wall.
