A top agriculture analyst on Wednesday said corn could climb to $6.50 a bushel in 2011, but a top executive at Sanderson Farms said that's not his biggest concern.
"What's important to us is to not be in a disadvantageous position relative to our peers. The big deal is what's going to happen to the 2011 crop," explained Joe Sanderson, chairman and CEO of Sanderson Farms .
"If the industry, if the country doesn't make a good crop in 2011, then we'll be facing a very critical situation in 2012. Our balance sheet can tolerate 2011."
Sanderson pointed out that corn isn't anywhere near $6.50 a bushel right now and although prices are rising, he said no one is certain where they'll go. The Laurel, Miss.-based company is unhedged for 2011, but the 62-year-old executive said they're factoring in higher prices in the coming years.
To see the full interview with Sanderson, watch the video.
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On Dec. 15, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian owns (YHOO), is short (YHOO) calls; Jon Najarian owns (IBM), is short (IBM) calls; Jon Najarian owns (C), is short (C) calls; Jon Najarian owns (CSCO), is short (CSCO) calls; Jon Najarian owns (AMZN), is short (AMZN) calls; Jon Najarian owns (F), is short (F) calls; Jon Najarian owns (MSFT), is short (MSFT) calls; Jon Najarian owns (HK) call spreads; Jon Najarian owns (JOE) call spreads; Cortes owns (TSN); Cortes owns (SFD); Cortes owns (TM); Cortes is short (LVS); Cortes is short (MOS); Cortes is short (XRT) vs. S&P; Cortes is long USD vs. Mexican Peso; Cortes is long U.S. Treasuries; Cortes is short Corn; Cortes is short Nat Gas; Cortes is short Gold; Cortes is short (BAC)
For Brian Kelly
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (WMT)
Accounts Managed By Kanundrum Capital Own (JJC)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (DE)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own (FXY) puts
For Todd Gordon
Accounts Managed by Aspen Trading Group are short the Euro against the Swiss Franc
For Emily French
No disclosures
GE is the parent company of CNBC
NBC Universal is the parent company of CNBC
CNBC.com with fires
