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SC Iowa | Alex.... I think we have several things coming together at same time...
1) A sell-off in the market which is reducing interest on the sell side as flat price retreats, even with improving basis
2) Renewed interest in adding late summer coverage from some end-users who were previously acting like they were in the "I don't care" mode
Some of these end-users are playing a very dangerous game.....they want/need to buy the corn for late August and September, but their bids show steep cash inverses in those time periods.....their "hope" is that the seller hangs on to the corn, and basis does come together at the lower levels........well, that may or may not happen....but some users are willing to pay a carry in the market today to sell corn for august and first half September time slots....
I suspect the concern over these gasoline refineries having to shut down or reduce production in the south has some of the ethanol producers thinking their prospects have suddenly become better for the rest of the summer season....
lots of uncharted waters ahead for everyone this year..
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My lanta...........
