|
SE MN | So, are you saying that you don't understand how harvest basis works? I'll help you out.
In his area he likely sees a wide basis at harvest, I'm guessing -$0.60 or so. Based on the information you provided on the Dec Corn contract price that would translate into corn prices under $3.50 cash. Now when April/May/June comes around often the basis narrows substantially, sometimes getting close to positive territory. This is how grain merchandisers make money. Since futures were well over $5 for both May and July for quite some time in February if a person did anywhere close to a reasonably good job marketing they were able to get over $5 cash for the corn they are delivering now.
Does that help? | |
|
Your farm has a trade deficit
