|
NW Iowa | Before the basis "implosion" local Valero E plant was $+1.70U. Then one morning they chopped a dollar off it and we were $+.70U.
Now its worked its way back up to $+1.40U. Called them the day of the dollar drop and asked how they set basis. She said they set the basis locally (as opposed to some white collar down in Houston calling the shots) and they base it off rail rates.
Can someone explain A) why rail rates dropped $1 one ordinary morning, and B) what do rail rates have to do with a plant that solely buys off trucks and grinds every bushel it recieves? (As opposed to buying trucked-in corn and shipping it out on rail).
| |
|
OC corn basis
