|
Northwest Iowa | Personally doubt there is a big play in basis either way. Again just personal view. One thing to ponder though as Noah noted, the local Coop announced free DP. They get the corn and own it so will have to market(sell) it. Is that done through a cash sale? If so, the Coop still has risk for an up move to pay out the original producer. Does the Coop then have to buy the board? They can not speculate. maybe that explains the new commercial ownership in grains.They make their money on volume as they have bushels flowing through every day. The market meeting I went to earlier this week, sponsored by the Coop, pushed for sales and basically spent almost 2 hours telling us that corn and soybeans can not ever go up. Pure fundamental analysis. I could have summed it up a lot quicker and said- boys we have enough for now. The Coop perspective is different as farmers have X amount of production-period vs the coop with every day a new production period. Technically, market action is good. I like it. Not going to the moon but there is room to go up. I'll try to figure out how to best get my charts loaded to help support my view. Take care, guys. | |
|
Just a theory
