Corn futures, to the moon, Alice

[rovo]

Jul 2, 2011 22:53:13 GMT -5 @wxyz said:

The drought is making farmers glad they sold their futures last year.

I don't understand your comment. Can you explain it to me in more detail?

[rovo]

I guess that is a "NO".

Aha !!! I see it now. The quote went from :

"The drought is making farmers glad they sold their futures last year."

to this:

"The drought is making farmers glad they did not sell their futures last year."

But I still have a question or two about the farmers selling of futures. Anyone on this board know anything about how this works?

[usaone]

Jun 13, 2011 8:05:28 GMT -5 decoy409 said:

Best put in your orders for Jiffy Pop?

Acreage planted in 2011 vs 2010

Iowa + 6%

Kansas + 5.2%

Nebraska + 9.3%

North Dakota + 12.2%

South Dakota + 14.3%

Farming is making a comeback! $$$$$$$$$$$

FTI correct again!!

[rovo]

So a farmer sells a "Foward Contract"?

Because I was thinking if the farmer sold his crop as a number of bushels of corn and the crop failed, then the farmer gets screwed as he has to deliver the corn or buy back the contracts. So, if overall crops were poor the value of the contracts would increase and the farmer would really get screwed.

The acreage planted sounds good but I heard the crops were doing poorly because of the weather. Planting a lot of acreage does no good if it all washes away.

I noticed a lot of farms in my area are in corn (field corn) this year. They appear to be doing very good and even the un-irrigated fields are looking strong. The problem is the number of acres in corn in NJ is insignificant in the market place.

[smackdown]

"So a farmer sells a "Forward Contract"?"

Most farms belong to "cooperatives" that typically have 1-share interests in the local silo. They commit to forward contracts as a cooperative-effort to sell the future year's production in-bulk. In exchange for the contract's buy price, the buyer may put up a percentage of the buy-price that is meted out to the member-farms to cover planting to cultivation to harvest costs. Literally, it's a system so old that it's considered one of the original fundamentals for currency and credit. An Egyptian artifact places such an arrangement (dispute) at around 2500 BC. The hieroglyphics report a default on delivery and the demand for repayment of the up-front good faith payment to the buyer.

As you might surmise, larger farms have catastrophic failure insurance that remits re-compensation to buyers if there is a natural reason for not meeting the delivery. Unfortunately, the past ten years and too many commercial entities buying up giant parcels of land have caused many family farms to go without insurance. Another aspect of Big Business and-- as Decoy409 has told us repeatedly-- laying the groundwork for turning all of America's Heartland into a massive GMO crop generator to "feed the world" with.

If you were thinking of dabbling in those contracts-- think again. You would be guessing at best, in a realm you are clueless as the associated and tangent variables.

[decoy409]

'Stay tuned'

To what? Old NEWS that I have already discussed that is now suppose to be a surprise to some?

'As you might surmise, larger farms have catastrophic failure insurance that remits re-compensation to buyers if there is a natural reason for not meeting the delivery. Unfortunately, the past ten years and too many commercial entities buying up giant parcels of land have caused many family farms to go without insurance. Another aspect of Big Business and-- as Decoy409 has told us repeatedly-- laying the groundwork for turning all of America's Heartland into a massive GMO crop generator to "feed the world" with.'

V_L,

[dumdeedoe]

Because I was thinking if the farmer sold his crop as a number of bushels of corn and the crop failed, then the farmer gets screwed as he has to deliver the corn or buy back the contracts. So, if overall crops were poor the value of the contracts would increase and the farmer would really get screwed.

That is why a farmer would insure his contract through a 3rd person insurance company like ummmm AIG and be protected........

[decoy409]

Great call dumdeedoe! I like your off the wall humour as I am sure you intended that above to be,AIG that is.

Had to for that one!

[dumdeedoe]

One has to find humor in a system that has 27 futures contracts for every 1 barrel of oil sold..
All I can say is those investment banks(bookies) are making a killing on thier commissions.....