|
Moorhead, MN | Can basis improve much even this summer? The end users "here" have been booking most of their needs through at least July - based on them raising basis or even not bidding on certain months. Couple that with continued lackluster bids from shuttle loaders (I think they are assuming rail issues will continue to be not friendly) and we have a recipe for not too much basis improvement anytime soon. Someone thought freight from Fargo to Savage would cost about $.50. Quite a bit of this areas wheat makes that trip at $.80 or more - I don't think corn would ship much cheaper, unless you could back haul every time. It may work for a few loads...
Duluth/Superior has historically been geared to wheat, but hopefully they can step up and help out. Truck freight there would likely be similar to Savage (less miles, no interstate highway).
I've sold a fair amount of my corn recently, and thanks to some lucky basis locks and futures moves, I'm happier about my corn sales than I thought I would be a couple of months ago. Unfortunately delivery has been difficult because the elevators haven't been able to keep corn moving - and are bordering on being full.
I've grown corn "here" since the early 80's, and this is the most negative I've been on the basis outlook so far. Hopefully things improve more than I'm thinking. But unless the shuttles start moving corn out of here, I'm not holding my breath. | |
|
Northern Basis Update
