Did a basis contract for some May/June 2016 corn delivery [40% of expected production] yesterday morning
I use the term "expected" very loosely as it could hail or our corn just looks really crappy]
Seems the local endusers bought a huge chunk of corn, yesterday [according to my grain broker]
I think they bought old and new crop corn and now feel more comfortable
The local basis has dropped 20 cent from yesterday
That is a big drop in basis, I think
I am more concerned about local basis then CBOT prices
I think CBOT has some legs
At least my decision looks good today
Might not look so good later
I closed out 5k today on that basis
Think a person needs to take a small cookie, once in a while, just in case
Assuming the price pays the bills
Hope all my future sales are better
