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sw363535
Honored Advisor

New crop Pricing....... coming your way....

Friday a couple of end user markets priced a little new crop corn Friday at $4.13

Okla panhandle region.

 

Basis improved a bit 

 

Coop NC-18 is at $3.98

 

Basis improvements might be coming.

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4 Replies
JimMeade
Veteran Advisor

Re: New crop Pricing....... coming your way....

I have a question - why do people say basis is improving?  What is improving is the cash price at the local site.  The money the buyer is willing to pay you.  It really has nothing to do with futures prices.

 

Actually, futures is cash plus basis.  Too often we think of cash as being futures minus basis simply because that is the way the media reports it.

 

When I sell actual grain the only thing I care about is the cash price.  When I hedge futures I don't pay much attention to cash prices.

 

But, I'll admit I've never been much of a basis trader, so maybe I'm missing the boat and am all wrong.

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FARM4FOOD
Veteran Contributor

Re: New crop Pricing....... coming your way....

cash price Chicago means nothing to me at home so basis is more important to me than anything in Chicago they Chicago are subject to money flow and charts not what markets are supposed to be based on supply and demand much more focus needs to be put on demand back in the day we had a 90 day supply of corn today it is maybe 45 this is a disaster waiting to happen and the idiots in Chicago will blame the farmer when it happens

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elcheapo
Veteran Advisor

Re: New crop Pricing....... coming your way....

Futures are actually cash plus basis....huh ???

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sw363535
Honored Advisor

Re: New crop Pricing....... coming your way....

Basis relation to freight is one of those truths that has become less true but still sort of — wheat yes Corn no. Dakota corn does not deserve the negative basis it endures. Not by freight from e or west coast. So some “lack of choices” profit taking possible there showinging as basis.
I watch basis movement. Export based improvement happens first in south & sw . Domestic feeding SW
Ethanol up the Ohio river
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