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How low will corn go?

Sligh1 said:
Great posts guys. I'd love to hear from the same folks & others on what your thoughts are on bean prices?
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Beans are a totally different animal due to the world production. Right now guys could lock in break even prices on soybeans for 2015 via buying puts (price floor). Some guys may take advantage of this and plant beans. This would not be a move to make large profits but merely make it through a year and pay the bills. I believe this market all depends on the Brazil and Argentina crop. I would put the bean market as bearish with lows around the $9.50 (on the board) mark a good possibility.
 
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I don't think the supply of beans is or will be as high as corn. Beans are still on the profit side it looks.
 
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turtlshell said:
heck, this year record harvest isn't even the issue...the farmers market report said there is still millions of bushels in storage. If so, where is this year's record crop going???

Plus that doesn't take into account the foreign markets.
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Do we still have sanctions against Russia? And weren't they our first or second largest buyer of corn and beans?

What will that do to Ag prices?
 
Actually canada, Mexico, and Asia are at the top. Europe isn't a large export destination anymore. I don't see it having an impact really
 
How quickly will land prices start coming down. I have been waiting for this to happen for 5 years so I can buy some ground.
 
IowaBowHunter1983 said:
How quickly will land prices start coming down. I have been waiting for this to happen for 5 years so I can buy some ground.
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It's not going to affect rec ground very
Much unless there is a good percentage of tillable. And it still won't affect more desirable farms in well managed areas. There are people on lists waiting for those farms.
 
1983, don't wait for prices on rec ground to come down. They won't. I bought my first piece 12 years ago for 700/ac. and they have slowly increased over the years. When I bought I could care less about corn/bean prices. It was about having my own piece of land with an even mixture of timber, crp and tillable. I also will not buy a piece unless there is running water, not cattle ponds, but a flowing water source. There is a large market out there that simply want rec ground regardless of crop production. That is why rec prices remain stable and will continue to slowly increase. Buy what you can afford as soon as you can.
 
If I was in the market for recreation land which I kind of always am I would wait. If you are new to the market and have the ability to save up cash that would be the plan I would stick to. Once you purchase you a committed at that price. In the current market you are competing with people that own land and have a ton of equity. When the market corrects which it always does there will be opportunitys to buy where others can't. To say the trend is only upward is incorrect. In 2007 the recreational land was at an all time high. In 2009 I purchased farms for my self and others in great areas for 1100.00 to 1700.00 an acre. In reference to the corn prices there may be correlation between corn and rec land but it is more closely tied to interest rates.
 
IowaBowHunter1983 said:
At the rate the feds are printing money interest rates are bound to make a jump at some point.
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kjohn15 said:
The biggest debtor is the US Government. They can't afford rates to rise very much, if at all.
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IMO...This combination can only end in a train wreck. Your choices are hyper inflation or default.

Who knows how this will all play out and maybe going out on a limb and buying ground at these prices for diversification purposes might not be a bad idea. That in part is probably what is driving the high land values. It is definitely why I can't buy .22 rounds.:)
 
Jdubs said:
I've been buying rec ground since 1991. keep waiting and you will pay more.
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I'm sure there were some saying this in 1981 also. They said this about tech stocks in 1999 and about tulips in 1636. We really are in uncharted waters right now. You might be right but at least go forward with your eyes wide open.
 
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Folks buy rec ground for investment and leisure activities. It's a form of entertainment and a lot of money is paid for every form of it. The desire to hunt, fish, entertain kids, etc. is a completely different market than that projected by the USDA. In five years rec will be more than it is today.
 
Jdubs said:
Folks buy rec ground for investment and leisure activities. It's a form of entertainment and a lot of money is paid for every form of it. The desire to hunt, fish, entertain kids, etc. is a completely different market than that projected by the USDA. In five years rec will be more than it is today.
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THIS!!!! When crops are high even rec ground goes higher, but if crop ground goes down, rec ground at least holds it's own. At least as long as there are still a few capitalist sportsmen with a little money to spend pursuing their passion. If everything goes in the crapper then it will be a matter of who has the most guns & ammo. Rec ground is my second best investment ever. :D
 
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