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South Dakota | I'm not sure what everyone else's bean basis is like; but here in the Dakotas, where we can't ever get rid of grain, we've had two phenomenal years in a row. Throw in, at least what I've read, PNW distruptions and I'm not surprised basis is depressed here. Fundamentally, I would say prices has dropped some because we now know Brazil is taking names and kicking ass, so that removes some of the risk out of the market. Once we get our possible weather risk premium, we will see where we end up. That will depend how negative the possible 88 million acres of beans drives the market....
This was a brief Cliff Notes of my thoughts, I can expand more if people so wish me to. None the less, in my eyes, this is still very fundamental. NA and SA having record crops, along with some disruptions in both countries, the price moves make sense, a slight hangover. Gut feelings would say our price should be lower, but demand has dictated otherwise. I agree with Conan that I don't know too many with beans on hand. Corn, that's a different story. But speaking with truckers tonight, most of the regional co-op piles have made their way to ethanol plants or rail loaders.
Edited by born2farm 3/13/2017 22:49
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