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southern MN | I've often wondered why people worry about the Chicago price - unless you live in Chicago. Local basis is actually my price, don't know about you.
I don't know that I've ever seen a positive basis on corn or beans in my life; corn basis is kinda close for this time of year. Most users buy/contract a bunch at the harvest surge when basis is wide, and there is little exporting from the region after the Missisppi freezes up so local buyers have a firm hold on any sellers until spring thaw. We export 1/3 out of the state, so almost always more sellers than buyers any given day threough winter.
The narrow basis - either less grain available; no one is selling; the trains are taking more grain to the PNW than the barges are taking south; or the bad drought left us real short of grain & buyers are scrambling - quietly so as not to run the price up more.....
Makes me wonder what the future holds for corn sales/ availabilty around me, where the basis goes. My coop had extra storage space - they turned people away the past 2 years (that may be why they have extra room tho....).
Basis is part of my price, it tells me a lot about demand and stocks - if I were smart enough to figure it out.
--->Paul | |
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How is ethanol affecting your basis?
