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Honored Advisor

Basis & Spreads

That`s all Darin Newsom has to watch to know the direction of the market.   However, those that determine the Basis & Spreads, watch the NASS, USDA reports and the weather.   I guess he let`s them do the heavy lifting and rides piggyback  Smiley Happy  He says "futures are weather derivatives" .  

https://www.youtube.com/watch?v=xrNW1BPgTHw  

 

Newsom says he`d love to see a 178 yield after the dust settles on acreage, that would be a testament to the corn genetics.  Newsom is a bear and is bearish wheat, he says if we do see a surprisingly good final corn yield, corn could get into the same class as wheat.  Where the "wheat crop is killed 9 times and still yields good".

I don`t know.  All these reports of "farmers broke" is premature, they sure have the money to pour on fungicide.  This last week it`s been like Snoopy and the Red Baron out there with planes flying.  One neighbor is erecting a new bin...so there you go.

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