I was watching some Famer/Agriculture news program at 5 am this weekend (I forget the name, its pre-coffee, though a show I've woken up to many times) and they were talking about the impact of oil prices on the cost of nitrogen fertilizers, and that said fertilizers affect the cost to raise some crops more than others, adding between $30 and over $100 per acre to the annual costs for fertilizer right now. Then you have transportation surcharges for the extra fuel costs, and a shortage of truckers to make deliveries. Finally, while corn is not at the highs of last spring, it is trading well above the five year average.
Scratch, of course, is mostly corn.
Now, since it looks like China plans to buy less going forward, corn in hand is actually trading above corn in the future, for at least the next few months...
THIS IS NOT INVESTING ADVICE.
but I'm expecting at least a temporary jump in feed costs (again) after they softened somewhat in the fall. I too buy from a farm store that bulks from a local mill, so my prices change weekly.
Scratch, of course, is mostly corn.
Now, since it looks like China plans to buy less going forward, corn in hand is actually trading above corn in the future, for at least the next few months...
THIS IS NOT INVESTING ADVICE.
but I'm expecting at least a temporary jump in feed costs (again) after they softened somewhat in the fall. I too buy from a farm store that bulks from a local mill, so my prices change weekly.