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| The last couple years we have seen a big divergence in basis levels on all agriculture commodities, from the corn basis cliff that the bears and bulls both claim victory, the corn cliff started at a premium to the board and went to 2 dollars over before the bears got their wish, last summer we saw the meal basis cliff, meal going to 200 over the futures again all the talk was be careful again went on for months before crashing, recently we have seen a basis cliff in feeder cattle with the cash holding and the paper puking, sorgem basis record high now (no talk of cliff ) my point being cash is king when the cash basis is strong even if the futures arnt the cash price normally goes higher to the producer, wheats turn next, oh and Long buy beans today 3rd down day | |
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cash vs futures
