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Central Ohio | Smithfield recently bought our local elevator and is railing corn south to NC. We also have a huge chicken feed mill, Poet E-Plant. And two large local hog producers feed Mills bidding for corn. I am thankful for all the end users.
So Smithfield has the best bid at +.08 against the march for immediate delivery.
I am looking out at July, and they are even with Dec17 for their July bid. Makes it 386. Why not bid +.14 against july? I am interested in a basis contract for july, but not loving the futures. And I don't like the basis contract of even with Dec17.
What advantage is it for them to bid their July like this? Is that showing they think carry will and they will gain some of that back on any basis contracts that are made now for july delivery?
Please help me understand this from a commercial perspective?
Edited by jbweston 1/9/2017 07:36
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Please help me understand the months used for basis bids
