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cropsey, il 61731 | One market is worried about actual grain and using it for something and the other market is worried about contracts and who wants them. The physical market creates one of many stories for the paper trade side. Sometimes both markets march to the same tune and sometimes they don't. Our side of the market wants some stability, the paper side does not like that at all.
Of course if the paper side gets too out of wack, basis steps in to reflect the physical market. However, basis is local and not everyone gets to participate. Everyone gets to participate in the board price.
I can't say the board price is completely wrong though going down isn't a big surprise since up was the previous direction. Basis is certainly tighter than normal and that would indicate the 'real' side of the market doesn't feel overwhelmed with grain. Perhaps it's a story in the making. | |
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Can the boat lean any farther?
