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North Central Illinois | I have never seen a local elevator use basis as a way to discount grain. If their basis is out of whack it shows up when put against competitors bids. If you are out of the ball park on basis versus your competitor you won't be in business long. Now, are elevator companies able to sit on grain and see a net gain in basis and pick up some carry in the market? Absolutely. That is what they do. It is called merchandising grain. It has nothing to do with how they discount grain for damage across the scale and grain that was not assessed for damage when it goes into commercial storage cannot be discounted against the producer at a later time. Once that grain crosses the scale the condition and any damage incurred are the responsibility of the grain company. Do they use some of the carry they pick up and basis gain to offset damage to grain that occurred while in storage? Well sure they do but none of that affects the producer. | |
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Piles of Wet Soybeans
