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EC SoDak | Maybe you’ll have some better luck your way, IA demand seems to be much less finicky as SoDak due to usage.
A few weeks ago, or whenever it was, I was writing about how I think my area will have a pretty hard cap on cash price/basis due to a big crop up north and west of me that will be brought in, where they don’t usually get it nor have the demand to justify stronger basis levels. Toss in, it seems farmers are wayyy undersold/hedged and have their bin doors welded shut waiting on a miracle. I figured basis will erode as they sell any rallies. Since then, I’ve chatted with a lot of local buyers. The comments have been they think folks are waiting for the typical spring/June rally and are mostly just coring bins right now, balance sitting in commercial storage.
If you’re a believer in going the opposite way as everyone else, it may make sense to unload now and then buy the board if you think we will rally and you’re feeling lucky. Haha. The carryout appears to be yuge, maybe 93-94 million acres of corn for 24, and not great demand. Oof
If basis dictates, maybe it makes sense to set some later basis contracts now and leave some open for later to spread the risk. Hard to say not knowing your local history.
Edited by SoDak Farms 2/1/2024 15:00
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Locking in a small loss....
