wheat prices at ehtanol plants

[disker]

Just wondering what wheat prices were doing at the plants like the one in Red Deer. I have heard prices of 4.50/bushel for spring but not heard of fall prices. Do they buy winter wheat and do they pay for protein or is it just a flat price like feed wheat?

[craig]

Just read the other day that a new plant in Saskatchewan was offering contracts at $3.65 for 2 years and $3.55 for one year. They said these prices were based off the PRO's. All plants that I know are currently using both CPS and winter wheat. I know Red Deer( Permolex) did some testing and felt they could easily switch from CPS to winter wheat and back without any problems in the system. Emphasis has been on CPS because of smaller acres of winterwheat.

[AdamSmith]

I just spent the weekend in Aberdeen South Dakota. Son was playing in the Rooster Cup Hockey Tourney.

In between periods, was outside talking to a fellow whose Dad and brother farmed 30,000 acres of Corn and Beans.

Land was selling for between 2300 and 3000 an acre.

Corn was yielding at the low end 180 bu to a high of 250.

80% of the corn was delivered off the combine to an ethanol plant. 20% stored on farm.

90% of the beans were stored on farm.

Price of corn was $3.17 or $3.58 Can.

So so an avg of 225 bu x $3.58 Canadian gives a gross return of $805 an acre.

He was saying that 20 years ago they grew mostly wheat but there is almost no wheat being grown now. Also 20 years ago their avg yeild on corn was 45 bpa. now it's 225.

What does this tell me other than the fact that there is alot of money being made in the agriculture industry, but not here?

We're falling behind big time here on the praires at least here in Manitoba we are.

This guy wasn't whinnig he was saying how good things were. It was great to hear.

What's this got to do with wheat prices at ethanol plants? Not sure, I just wanted to relay this conversation I had with a guy with no political axe to grind.