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Veteran Contributor

Corn Basis

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



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