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Blacksandfarmer
Veteran Advisor

300 bu corn & a plus basis

As some of you know, I farm and sell seed. So I get a chance to see more yields than just my own. Soybean yields in my area (Michigan/Indiana line) were really good overall. Most soybean yield reports were mid 40's to low 60's. When it comes to corn yields things were drastically different from field to field just miles apart. I rode in the combine with a friend of mine a couple weeks ago and watched the yield monitor hit 311 bushel in a spot. Most of the field was in the 260 range, and this was an unirrigated sandy clay field. Had another friend of mine report a field average of only 60 bu on heavy clay. I can go 30 to 40 miles in about any direction and find a plus basis. I hauled plenty of corn to the elevator in October and there were plenty of sellers. Corn yields were generally very good, but a bin buster? No. Do the commercials know something CBOT does not? Or are these just spot shortages and tight farmer holding? 

 

BTW: Ag.com please fix this site!

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3 Replies
timetippingpt
Honored Advisor

Re: 300 bu corn & a plus basis

Important to remember that the commercials always know more. C's trading desk in MN trades more grain than every other country in the world. They have really, really good satellites. They control the the cash export book (they meaning A + B + C*2). Remember Cargill sold the ethanol plants the double long corn position at $8 that broke them. 

 

The way I look at it though, we trade basis and price seperately, and always have. So, if the want the physical so bad, they can have it. I'll take the cash and not worry about mold, etal. We'll be emptying the bins soon.

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roarintiger1
Honored Advisor

Re: 300 bu corn & a plus basis

Time,  I hope there are more folks like you who move their grain soon at these price levels.   It'll just make for a larger rally on down the road.  Smiley Wink

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buckfarmer
Senior Contributor

Re: 300 bu corn & a plus basis

Similar situation here in southern Ohio, Sandy.
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