Many who hedge in the futures market or market grain through someone who uses futures or derivatives may face a reluctance by lenders to bankroll them, says Art Barnaby of KSU. He thinks it's possible we'll see the results of this as higher interest costs on margin loans which will be translated into wider basis.
Here's the U/Ill blog on the issue.
http://www.farmgateblog.com/article/1515/you-are-closer-to-mf-global-than-you-think
"Summary:
The collapse of MF Global could be felt as much by lenders as by farmers and elevators which had placed hedges, but have lost all or part of their margin account. If lenders lose money as part of the bankruptcy, their future reluctance to loan money for risk management margins will be a significant loss. If money is loaned, interest rates could be charged at premium levels. Elevator managers will likely have to pay higher rates, and that will be reflected in lower cash bids and wider basis levels. "
