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Ontario's middle east | Some of us believe that basis will follow the spreads. When we had an inverted bean market shorting the basis worked well because every time you roll through an inversion your sell basis gets better by the amount of the inversion. We now face a market with carry from crop to crop. It's not paying our cost to carry the beans but if we sell them and basis follows the spreads even slightly higher out of harvest the carry spreads makes the sell basis worse..... Not a favourable position. This is why DP was free with the big inversions but now the charges are basically covering the loss on basis improvement post harvest if the elevator moves those DP beans so they can take your corn. | |
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DP/storage rates ??
