cancel
Showing results for 
Search instead for 
Did you mean: 
sw363535
Honored Advisor

range for corn

May corn should test the $5.08 range in the next week.  When It does I will price my basis contract for delivery in April.  It has a locked in basis of 53Cents +  done back when the basis was better.

 

Last week I priced the 15 loads of milo delivered in the week on a basis contract similar-----

 

Today I am going to be forced to take this up and price the milo being delivered this week.  Contracted in February when the basis was strong, for delivery in March.  

 

One has to get ahead of the MOUNTAIN of corn that will be falling from the sky at any second.

 

 

0 Kudos
11 Replies
Hobbyfarmer
Honored Advisor

Re: range for corn

Are we talking white corn here?

 

I thought it was just snow flakes.

0 Kudos
Hobbyfarmer
Honored Advisor

Re: range for corn

basis.png

 

Top black line = 3 year average price

orange line = cash price

bottom black line = 3 year average basis

blue line - current basis.

 

0 Kudos
sw363535
Honored Advisor

Re: range for corn

those are developed to take your attention away from their basis adjustments.  Maybe....

 

notice how much volatility their basis changes took out of the CBOT pricing

 

history.gif.png

 

 

0 Kudos
sw363535
Honored Advisor

Re: range for corn

Does the chart show on what day the Farmers Coop began trying to hold the price down for their buyers????  You thought they worked for you????

 

Why would basis drop in a rising market?  __my answer---- not enough competition on the demand side or a lot of grain got sold and yet "not enough"????????

 

It did for all of us and has for several years.  Collusion????

 

Thanks for showing why I do what i do.  Wish I could explain it..

0 Kudos
sw363535
Honored Advisor

Re: range for corn

Farmers don't sell on the cbot chart ---- but the coop chart begs you to sell.

0 Kudos
c-x-1
Veteran Advisor

Re: range for corn

aren't the coops and their charts just trying to SCARE some out of the producers hands before the quarterly???

0 Kudos
Shaggy98
Senior Advisor

Re: range for corn

Who's scared?
0 Kudos
c-x-1
Veteran Advisor

Re: range for corn

right, too early for Halloween...what a classic flick, btw.

 

my cousin and I went w/ my dad the weekend it came out.......gotta picture this --we were in lower third of this smallish theater -- after the 1st scene these 2 ladies in the front -screamed at the top of their lungs, jumped up, and ran out of the theater -- like it was surreal enough to be a part of the whole act................

0 Kudos
Hobbyfarmer
Honored Advisor

Re: range for corn

SW: if your looking or thinking I'm a promoter/defender of the local coop I need to adjust your thinking.

 

It was just a good chart of average corn prices and basis moves in this area. Just two players in our local market. Two ethanol plants each 40 some miles away and Cargil Eddyville at 100 miles away.

 

The other corn market is a Gavilon terminal 18 miles away. Their corn bid is always below the coop's bid. Right now it is 4 cents less. Trucking to the E plants is also not cost effective at 40 miles.

 

On the bean side Gavilon is usually 8 to 12 cents better bid. They mostly hold their price at exactly the trucking costs below going the 100 mile trip to Bunge West at CB Iowa.

0 Kudos