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Ontario's middle east | New crop basis is currently very strong in most places. Exporters are short and needing to acquire beans. At some point they will get covered and there are a lot of beans that are going to have to move because it makes more sense to store corn working from hedged positions. I will predict that we will see some basis pressure in gut slot harvest. It is impossible at this point to say how much... That will be a function of transportation, weather and harvesting pace. Once that bottoms out look for a bounce in December and then a very slightly inclined basis chart out until summer. Spreads are showing weak carry at this point but that could fade. Overall I would say relatively flat spreads = relatively flat basis out of harvest. Speaking as a hedger, I say store cash not beans. If you are gonna gain from beans in the bin it will be from futures appreciation, not basis appreciation...... There are safer and cheaper ways to transact that IMO | |
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Local elevator storage
