03-19-2013 10:01 PM
In 1996 the Corn Jul/Dec spread increased 146% from Mar 19 to Apr 26
That same spread today settled about +149---are things getting tight enough for this spread to approach anything like '96, yet?
03-19-2013 10:38 PM
03-20-2013 06:20 AM
JMHO, CX-1 new crop corn is a sucker`s bet, too much is already dialed in. Right now old corn is a "domestic market" Here`s what David Kruse is saying http://www.commstock.com/radiobroadcasts-v2.asp
03-20-2013 06:48 AM
According to Kruse, "We think there is another entire new season of rationing coming." It's too bad many think that the rationing is already done. Although many didn't fill their bins and those that did have emptied them already, what grain is left should fetch a handsome reward. As Kenny Rogers sang, "You've got to know when to hold 'em and know when to fold'em......know when to walk away, and know when to run."
03-20-2013 08:29 AM
Well-------- Infire, I would say $7.76 was too high for a lot of well fed cattle. $7.22 wheat (or less) just took over that spot in the demand mix and the plan is not to go back to corn til there is a sizeable supply. In a one week period that decision changed the marketing and basis in the sw region.
I have been in this spot before-------normally in July------ where I have some old crop on hand, waiting for that spot market or a slack spot at the feeders we market too, and it suddenly becomes apparent that I have some new crop corn in the bin.
It's one of those "Genious Marketing moves " I try not to tell about-------------------- The price is $7.76 now----- and it makes my poor marketing moves easier to report, and my grain easier to get out of here.-------------- May delivery here is $7.93 to the ethanol plant.
Was enough to pull some triggers here.
03-20-2013 10:49 AM
Correct me if I am wrong, but doesn't $7.93 for May corn to the ethanol plant transfer to a 64 cent over Chicago Basis Level? That's a darn good ethanol basis level. Believe that is current 25 cents better than our ethanol basis level in North-Central Iowa. $7.93 is too good to turn down I believe.For me, $7.93 would translate into an over $900/acre profit for old crop corn. I think I would sell some if your profit level is the same as us Iowa guys, but this profit level is only if you have your farmland completely paid-off, not if you are paying a $500/acre cash-rent.