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Honored Advisor

The hook is still baited

"Bean DP Program - FREE DP! All bushels must be priced during CBOT hours (8:30am-1:15pm central) by the close of business on Sept 30th, 2014"

 

Bunge west.

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4 Replies
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Honored Advisor

Re: The hook is still baited

Raising their basis might just get them more bushels than this...................

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Senior Advisor

Re: The hook is still baited

It's a volume game, so anything you get your competitors don't. However, if beans are in short supply then the posted price isn't the price, unless you've already moved them to a buyer.

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Honored Advisor

Re: The hook is still baited

Pal the word phrase is "willing victim".

 

Give away options AND ownership. Two strikes and you are out in that game.

 

On a slightly different note,

 

I see on this really nice up tick in the CBOT that nobody around here has fiddled with enlarging the basis. Could it really be they know there is a possibility of tightness and also suspect that the few of us still dumb enough to still have grain on hand know it too?

 

Day is still young wouldn't put it past them to try it yet this afternoon.

 

 

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Senior Advisor

Re: The hook is still baited

My observation is those still owning are aware of future potential - and downside risk. At the moment I'd say future potential is more promising depending on the timeline, that is, beyond early summer the risk could increase depending on spring planting. It's just further into the unknown but it will become clearer.

 

Keep in mind I'm not talking about futures. I'm talking fundamental supply/demand. Demand has been the king maker, no doubt about it. An opportunist marketer can be watchful for the weather issues during planting and further development of trends during that time.

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