About pricing under breakeven
From Kyle (and much the same from many folks yesterday midday):
"Do I contract new crop at a price under my breakeven? I know... I hate to even ask it. I recently talked with a local grain buyer who is now retired and out of the game, so he has no skin in it anymore. He said he would sell all old crop and contract 50% new crop at today’s price. I said "well that's under my breakeven..."
His reasoning was Brazil has a stellar crop (every 1 bu lost in Argentina will be +3 in Brazil) and if US has good crop we could see mid $4 corn by fall
Seeing July tanking is alarming or are they trying to scare guys into selling before summer (when we all are planning on higher prices)."
Roger’s response to Kyle: