Death comes to us all. Life's but a walking shadow | I kind of got lost through the first part but I think he's saying that the price FOB on the Gulf is the benchmark and all the components to get grain there combine to determing what the producer get's offered?? I agree, especially in the past before ethanol became important but I wonder if ethanol hasn't assumed at least part of that price leverage point?
I thought this part, quote:In my opinion, market carry gives us much more insight to what basis will do, not freight levels. Large carry tells me to hold my grain off the market, so if demand exists basis is going to have to narrow to take out the market carry. If very little market carry, then basis will not have to work as hard to move grain." was especially interesting. |
freight--basis--delivery points....... Very good read
