A popular question coming into the UW Extension office this time of year is how to convert from wet to dry corn price. Although there are many different types of tables available, the following simple formulas will get you right in the ballpark if not at home plate.
To determine adusted dry corn (15.5% moisture) price if wet price is known:
Dry Price/bushel = (Wet Price/bu x 84.5) divided by (100 - % moisture of wet corn)
To determine wet corn price if dry corn (15.5% moisture) price is known:
Wet Price/bushel = Dry Price x (100 - % moisture of wet corn) divided by 84.5
Let's take a look at an example. One neighbor offers you 25% moisture corn at $2.50 off the field. Another neighbor offers you corn at 28% moisture for $2.35 per wet bushel. What is the best deal? Using the top formula to figure equivalent dry price per bushel:
Neighbor 1: (2.50 x 84.5) / (100 - 25) = $2.82 per bushel equivalent dry corn price
Neighbor 2: (2.35 x 84.5) / (100 - 28) = $2.65 per bushel equivalent dry corn price.
Thus, neighbor two was offering the most dry corn for the money.
Now let's say you have agreed to sell high moisture corn to your neighbor for an eqivilant dry price of $2.80 per bushel. Once into the field, you determine the moisture is 27 percent. What should be charged for an "over the scale" wet bushel price? Using the bottom formula:
[2.80 x (100 - 27)] / 84.5 = $2.42 equivalent wet corn price
Once an equivalent price is established, other considerations can be made such as hauling distance and alternative buying options.For more information contact Mike Rankin