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03-31-2017 08:46 AM
Ethanol grain buyer calls twice a week looking for 90 to 150K corn for June & July.
Incentive ........... basis up 5 cents.
"Special offer before the basis (now at record low levels) goes down into summer."
We probably don't have that much left for those months, since other users have been out bidding him for months.
But, As a producer what would you take away from that phone call??
Solved! Go to Solution.
03-31-2017 09:07 AM
Well sw - My take is that they don't have there needs covered for them months - but your thinking why , is my guess - My guess it that the other companies has took there corn - as in a higher bid = there just not be much grain left for them to find , He's my reason - We have a truck on the road - the past 3 winters - early spring - there -- zero grain to haul - that ok with us - as there no money in it - Yet this year - we have had call after call to haul corn - we did take on one big job that paid good - and kept us close to home , I have talked to other plants and they all say that there is tons and tons of corn still in the bins - Boy that's not what were seeing - 2 things - Grain was not that great that went in the bin - and most thought - that hey - this may be as good as the price gets and shipped it out - not like the past few years where they sat till summer - This just may catch the experts at these grain companies off guard .
And one thing I have noticed over the years - when they call you for a "Deal " - well it's bend over time : ))
03-31-2017 09:27 AM
So..........a bullish report and the futures go up, and his basis comes down.......netting you the same $$.
A bearish report and the futures go down..........and the basis stays the same......netting you less $$.
It looks to me that either way.........he wins.
03-31-2017 11:37 AM
Complimentary tube of SuperLubeXTREME on the way. No charge Buddy! LOL. So, what didi we learn from today's report. Absolutely nothing other than be prepared to lose money regardless of what you plant for the remainder of your farming career, however long that may be. Cheers. We're Screwed. Now...go out and plant the hell out of it! .