Grain prices continues to vex investors as the crop-growing region of our nation struggles with the worst floods in 15 years. To make matter worse, the Mississippi River could jump over the top of as many as 33 levees, threatening hundreds of thousands of acres of farmland if sandbagging efforts fail, according to a map released by the U.S. Army Corp of Engineers.
Although the price of corn fell Wednesday on speculation that flooding will soon ease current prices have sparked concerns that demand from ethanol makers and those who make livestock feed will diminish.
For further insights into the damage and what it means for the ag trade we turn to Agrium CEO Mike Wilson. Following is a synopsis of his main points.
Are your prices sustainable?
”Prices are sustainable as long as the grain fundamentals stay strong,” says Wilson. “If crops stay up then (farmers) can afford to use our products.”
Why do farmers choose your product?
“We’re selling increased yield. We provide the latest technology in seeds, fertilizer, and nutrients. We give the farmer increased yield and higher return,” explains Wilson.
What are farmers telling you about the floods?
“Some farmers are going back to the field and others are saying I’ll take what I can get,” he says.