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Poor side of Reno | if its tucked away in your bins why would you give them ownership to do whatever they want with it while you assume all pricing and financial risk as an unsecured creditor. I don't care what is protected or not protected from the grain fund. you wont be made whole if things go south so why risk it
as for what it means
based on conversations I have had the last few weeks. farmer selling is non existent. depending on your market structure and end user profile, DEMAND IS GOOD. big crop loaded the regional commercials up with more grain than normal and they have been feeding these end users. that is about to dry up, IE your comments are pretty much confirming this. bigger terminals and end users are going to have to start drawing from farmers bins very soon.
in a nut shell, they see opportunity coming based on their own backyard, and if they can fill back up with DP/free storage grain, then tank their bid and basis thru next harvest, turn a buck to boot and leave you holding the bag
basis is quite good locally. flat to a penny or to on the plus side for corn and that's advertised, they are tacking a dime or two more on if you are willing to move some volume on the phone. beans even better, +20 or more.
fact is this large crop is getting chewed thru at a break neck pace, and it is also shrinking too just wasn't quite as big as first thought
IMO corn needs to get its act together or 2015 production is in jeopardy, and beans could be in tighter supply than first thought come May
Edited by MGII 2/25/2015 12:22
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free storage at elevator
