"What limits our imports is the fact a vast majority of our (soy) crush is away from the coast. So you have to import and then you have to move it in from the door, up to where the crush plants are. It's not cheap, and it takes time," said Anne Frick, senior oilseeds analyst at Jefferies Bache in New York.
Indiana dairy farmer Mike Yoder is buying grain on a weekly basis, hopeful prices decline as farmers and traders become more confident that frequent U.S. rainfall will bring a bumper harvest. Yoder sold 50 cows earlier this year after selling 85 of his milking cows last year to stop the flow of red ink and stretch feed supplies. He may have to sell more.
"I just buy it as we need it, hoping that as we get into July that we have good weather during pollination that it will soften that price a little bit. That's what we are counting on," Yoder said. "If something happens to that corn crop and prices stay in that upper-$6 and low-$7 range, we are going to sell more cows."