One concern he expressed is how the market will play out for dry distillers grains, a byproduct of ethanol production and which makes up about 15 percent of his feed ration. He said if prices drop considerably lower, China and other foreign buyers will be back on the market competing for the product, and that will drive up prices.
For San Joaquin County egg farmer Richard Jenkins, positive news about the corn crop will influence him to "buy a little more in advance," but mostly he will continue to buy his corn on a monthly basis, he said.
"We don't play the market that much because it's so volatile," he said.
Even though corn is about 80 percent of his feed ration, Jenkins said he hasn't been hurt too badly by high corn prices because the price of eggs tends to adjust along with the cost of feed. He said if feed costs soar, then producers trim their flocks, which reduces the supply of eggs, driving up egg prices.