West Central MN (between MMF and Larson's) | ehoff - 12/1/2015 04:52
The 10 million dollar question as poker is being played in the basis world, will you beat the crowd to the basis gate before it slams shut and at what basis will that occur. There must be a huge amount of grain that farmers have on storage at the local elevators. Has free do started to pop up yet?
Really can't tell you on the Delayed Price. Don't play that game. Only leverage a guy has anymore is when we decide to move the Bu through the system. Once they got the Bu basis movement is almost impossible.
Ex) couple years ago a neighbor had negotiated a basis push for 20k of movement. He said thats great, why don't you apply that to my condo storage bu. and the response was "no, we can only do that on new bu that haven't been delivered yet. "
In theory we should be able to use storage for carry and basis improvement. The past few years that basis improvement has been best early, then we've had to manage the futures positions on the board.
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Maizing/E Insider/ SD ELEV or others any Basis insight??
