By Jon Scheve, Superior Feed Ingredients, LLC
This past week many funds exited their long grain positions. Some in the market were concerned over a worldwide economic recession and the two-week weather forecast that suggests widespread good growing conditions.
Basis and spreads
Record basis levels throughout the western Corn Belt suggest farmers are not selling cash corn. That’s why end users are increasing bids because they likely do not have all their July needs covered. The July corn futures spread between September and December also increased, indicating strong demand for the immediate shipment of corn.
Both factors have likely forced commercial facilities to sell out of all remaining grain ownership, which means any grain still left in the U.S. is likely owned by farmers who have not priced corn stored in the bins.
Farmer vs. end user
Farmers who still have unpriced grain are telling me they are not selling anything until they know more about weather conditions in mid-July.… Continue readingRead More »