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S Mn | One thing that may also happen depending on if your plant is and individual plant or part of a larger conglomerate of plants, the local grain buyer at the plant that i try and market my corn with was telling me that they have been running harder this winter than they have ever ran. Obviously i ask whys that, he says well we can originate grain here for -.40 and our plants out east have to pay +30 so with the .70 cent spread we are running harder and they are idling back. Not saying that this applies to your situation but it may. If futures does rally our basis will likely get worse (allot of corn here to chew thru and not enough places to go with it) and yours may also just because they can use the capacity of western plants to offset the eastern ones. If your confident you can be the last guy standing with ownership of grain and that your plant will want your grain your in a good position. But if they get enough bought to get them thru till new crop comes in watch out.
I would guess you still have time to sniff out whats gonna happen yet without a major basis swing tho.
If you are in an area that had a super short crop last year i wouldn't sweat it to much tho.
I'm on the other side of they coin, we are in an area that had a monster crop and their isn't gonna be enough homes for it before fall roles around again and somebodys gonna have to hold some corn to have a birthday. | |
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A little more on HTA
