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SC Iowa | Pretty good time for folks in the north country to become hedgers of old crop corn and earn the next 50 cents or more from basis appreciation
Since our business unit leases an asset at Wahpeton, I've watched the growth of ND corn production over the last 15-20 years...it was not all that long ago when a 100-150 myn bushel corn crop was considered big, and now the state is looking at 400+ myn crops that require a lot more storage than the small grains they are replacing.
If you go back to the days of CCC corn loans and corn in the reserve program, the northern cornbelt was noted for carrying much of the US supply; IF we make another step in increasing corn stocks this growing season, I suspect to see only modest gains in corn basis in that part of the world....of course, a revival in Chinese corn interest could change that, especially if corn production shrinks 25-35% this year in ND... | |
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To Tara and Sat
