US Farm Economy Flowing in Reverse as Drought Impacts Persist

NORTHWARD BOUND

The reverse flow northward is being primed by high bids for corn in the  Midwest cash markets. A grain elevator in Lake Village, Ark., along the  Mississippi River, was bidding $4.41 for first-week August delivery, while a  processor in Cedar Rapids, Iowa, was offering $6.01 — a difference that is more  than enough to cover transportation costs from south to north.

Demand on the Mississippi for corn is pushing prices to a point that poultry  feeders are switching to wheat, which is less expensive. Corn prices spiked more  than wheat prices did after last summer’s drought.

“Usually our poultry feeders would be hollering for corn, just clamoring for  the stuff, but we just aren’t seeing that,” said Shep Bickley, owner of a Cain  Agra grain elevator in Arkansas.

Despite the high corn price, demand on the river in the Deep South remains  strong. “Our local river terminal was bidding up everybody by far — blowing the  door off the (poultry) feeders,” said Bickley.

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