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CENTRAL ILLINIOS | The question I would have is who takes the basis risk if they move your beans to the enduser today and the basis makes a big unexpected move. Say the basis today is -45 to the July but by next summer they are begging for beans and paying -5. If you have the beans still in storage you get the basis gain, if they are gone on a dp contract the enduser allready has them bought at -45. Is your coop strong enough to sustain that kind of hit. Of course they think it will go the other way and they make a good profit.
I expect you are going to see more of the dp instead of storage crap until it hits the fan big time. In Illinois the state sends grain inspectors around every once in a while to make sure the grain in the bin matches what is on the books of the elevator. It will be a lot easier to use the old shell game to hide a money deficit than a grain shortage from these Barney Frank grain inspectors.(Barney is head of the Financial Services Committee making sure Goldman Sachs doesn't rip off the taxpayer) | |
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Local COOP bullying attempts
