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 He says "futures are weather derivatives" .
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.