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marketeye
Veteran Advisor

Farmers Hesitate To Sell Cash Corn

Are you one of them? Or, are you hearing the same story in your neighborhood? The cash corn basis remains strong, meaning the endusers can't get enough from the farmer. It's an annual standoff, perhaps this year the farmer has the upperhand?

I'd be interested to hear your experience with the local cash basis market.

Here's the full story: Farmers reluctant to sell corn into strong basis market

Thanks,

 

Mike

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15 Replies
rickgthf
Senior Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

I thought our basis here was strong at plus 62 cents until I saw Indiana's at 75.  That said, I sold a few load week at that 3.93 level plus 62 cents so I'm not feeling too bad and I need to make space for the rest of my corn anyhow.

  Interesting note, the normal minimum test wt at the ethanol plant has been 52-54 but this year they dropped that down to 46 just to get some corn.  Fortunately, my test wts. have been in that 57-58  range.

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sw363535
Honored Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

Not as good as a congressman's rant but I would sure enjoy usda's explanation of "where all the corn is".

marketeye
Veteran Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

rickgthf,

 

Thanks for sharing your local angle. It helps shed some light to the ground-truthing of this story.

 

Thanks,

 

Mike

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gmaves
Senior Reader

Re: I thought our basis was strong at 62 cents until I saw Indiana's

N.Minn. is .43-.60 under , with trans. cost maybe get 3.15

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BA Deere
Honored Advisor

Re: Farmers Hesitate To Sell Cash Corn

I wonder if the corn is really there?  Many good intended smart people with my best interests at heart begged & pleaded with me in October  to "lock in -.34 basis...even if you don`t sell" .  Now it`s -20¢ under, being a good listener isn`t my strong point  Smiley Happy   But "they" ask what is your state`s corn yield in 2019?  Almost everyone guesses way below USDA, so what does that tell us?

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sw363535
Honored Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

That area of Indiana and Ohio fought a very difficult year and I understand why supplies are tight, but it is something beyond greed when you can get $4.60-70 now and not sell something......  Maybe we need to check the hot bins with something besides a camera....   

Here in the southwest .... three major feedlots for cattle( totalling @350,000 cattle on feed minimum)  in the area canceled their wet corn contracts and left their pits empty.  That decision was made well before harvest started, and was based on acres of corn reduced for the 2019 harvest.  That is well in excess of @5 million bushels decrease of production in a small area.... One producer reduced corn production by 1.5 million bushels on planting choices... well before weather issues arose.  USda never considered this, first time in 60 years event.  

Not that I want to blame usda ---- I know i expect way too much from their condescension----- But how many indicators do we need that the commodity futures (price fixing) game is broken......  

It is quite an Irony now---- We have a +25 basis corn and  -1.70 bean basis in kansas and Indiana has a +70 corn basis.  Perhaps that says CBOT is dysfunctional...... or producers are far better at producing that traditionally thought...... example ----The corn belt is bigger than our belt loops and bean belt needs suspenders.

One part of it is useage is not as regional as it once was.  example  Iowa now consumes more corn than it raises.....

Question I have is where does usda plant their acres?

BA Deere
Honored Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

I`m kinda between Indiana and Kansas, you guys are +25 & +75 on corn...so why should I take the Makita to the weld beads on the bin doors for negative 20?   Better days ahead.

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Hobbyfarmer
Honored Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

Yea BA,

We're holding out for that positive basis even though the cbot drops another 50 cents...

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roarintiger1
Honored Advisor

Re: I thought our basis was strong at 62 cents until I saw Indiana's

Ethanol plants in my neck of the woods have lowered basis and are railing in corn from the west.    Current basis is +.30.  It was running +.40-.50 all through harvest.   It's not surprising that guys aren't moving corn now, especially since most guys have much less to sell in the first place.  History tells us that prices will get better in the spring months.   We shall see.