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SC Iowa | There was definitely some pent up selling interest by the activity seen at several of our processing plants and also in the company elevator system.......but it had little effect on basis for the time being.....things can get a bit goofy when one set of futures is going into delivery and the next month is becoming the lead....and with an 11-12 cent spread, that spread can get chewed up pretty quick under certain conditions..
As someone who would always prefer "wider" to "narrower" when it comes to basis, my bias has been for a lot of March and early April corn movement.....but with this winter dragging on, my fear is that we go from snow to mud and continue the sluggish pace of corn movement...
It's going to take a lot of care to get some of this wet corn through planting season, but I know folks have been bombarded with quality sermons with great regularity---and are watching closer than ever...
Corn quality coming to our plant is pretty decent considering how much wet corn is out there......on daily unloads of 425-450,000 bushels, 25-30% is coming in over 17% and that subset of corn is averaging almost 18.5%....but FM is pretty normal, and we are seeing an uptick in damage from a normal of 1.3% at this time of year to about 2.1%....we are rejecting 2-4 loads a day for damage and/or FM above 10%....
Test weight is improving as we work through the 50-52# corn......it was running 4-5% of unloads in late November and December, but down to 1%.....average test weight is close to 55.5 #
Ray J | |
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