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Why would farmers store Corn when the market is inverted?
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kb ag
Posted 5/20/2023 09:21 (#10236321 - in reply to #10236255)
Subject: RE: Why would farmers store Corn when the market is inverted?


nc ks
I responded to you down below with some thoughts
I think there is probably more corn about than you think judging on how the basis is slipping. Brokers are keeping in touch but end users seemingly have no urgency right now. Yes the market was inverted, but there was a big hole in supply for sw ks. The river had problems early, export business never showed up, so domestic corn had to go somewhere and it did. Will local supplies be needed to finish things out? The window is getting smaller. Will large areas of the western belt be able to get timely and often rains to produce a crop this year? Idk, but it has been a perfect storm against corn prices so far, so big western crop could happen.

I think my best hope is consistent high quality corn is needed by food type processors to finish out the season. A turn in focus from fast planting to not so great weather could help by a buck easily too. All is not lost either yet. I can still get close to 7 for corn yet and freight rates are dropping. The elevator price during harvest was in the low to mid 7's. Not trying to say holding on to it this year was the best decision, but having ample corn and beans around late in the season has been very good to me the last several years and you kind of go with what you do. No excuse for not protecting on the board, but I tried to win at that game for a lot of years and I rarely ended up rich from it and it definitely raised my stress level so I quit. Funny how I'm not stressing about the corn in the bin at all, maybe not enough. Lol.

In another note that is inconsequential but interesting in light of running out of corn at the port. A truck that was in here loading yesterday said they had been loading corn out of a group of smaller elevators that had been bought by a big outfit. The corn was 7 to 8 years old and didn't really flow into the truck, more like plopped. They are hauling to port in ok and it is headed to port to be blended for our valued export customers.
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