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| In times of big supplies, there will be carry in the market to hold off some of the supplies till it is needed for consumption. Often, as long as the supply chain is not disrupted, a contract month will gravitate towards where the previous month expired. That has been the case most all this summer. Spot futures didn't maintain where they were, they slipped close to the level where the previous contract expired.
If an elevator were to offer $3.08 for Oct and $3.08 also for every delivery slot in the future, They would receive a glut of corn today..during Oct. as there would be no incentive to hold til Nov, Dec, etc. There would be unused storage throughout their trade area, as producers would say I'll take the money now, instead of handling it twice, and keeping it in condition.
As it is with your price chart, anyone and everyone with storage should be looking at a way to utilize it and look for the delivery time in the future which fits their logistical conditions best(not during planting, not when the roads are bad, etc.
Those prices for next spring/summer are available TODAY, but there is no guarantee that they will be when that day is here. In all likelyhood they will be either higher or lower. | |
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