By Jon Scheve, Superior Feed Ingredients, LLC
As corn harvest finishes in many areas, and free harvest storage time is up, farmers need to decide if they will price grain now or pay for storage and wait for a rally. Given this week’s price dip, it seems some may have already “thrown in the towel” and priced some corn in commercial storage.
On a positive note, some end users across the Corn Belt increased corn basis bids 10 to 15 cents from last week. There are also some reports of free DP (deferred pricing) being offered in areas where corn harvest is finished, and farmers aren’t motivated to sell at these lower prices.
Bean futures are struggling with no China trade deal. However, since farmers aren’t selling, basis continues to climb. My local processor increased their basis bid another 5 cents this week. That makes it a 25-cent improvement in 25 days, while my local elevator is up only 7 cents in the same time period.… Continue readingRead More »