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Ontario's middle east | I have spent quite a bit of time lately looking at basis and trends. We have seen a bounce back from the bottom of the cliff, mostly right in the gut slot of harvest. It is my belief that most areas have a significant supply of corn. I have commented here a few times that we are in a transition mode from pipeline supplies to a surplus. This requires a change in the mindset of the sellers. Although the basis has indeed been following the spreads, I think we will have a diversion here while we transition. Unless you are in an area where corn is very tight I would now look at dumping the basis. Here is a chart for Dubuque IA, from 07/08. That is the road map I'm contemplating. Would be interested in hearing Ray or other Iowans comment on the dynamics of the market that year.
Edit, last chart is this year and was updated last week.
Edited by Maizeing 12/9/2013 20:37
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Capping Corn Basis Expectations
