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| I just got off the phone with a merchandiser of our local ADM, and he said that the basis struggles we are seeing are directly tied to the huge margin calls that the elevator has been seeing on HTA's. They have to make it up somewhere he said. So much for basis being the cost of transporting grain.
He also said the rumor today was that Cargill was going to go to max 60 days out on grain sales due to the recent volatility. That changes a farmer's marketing plan. Although spec. money seems good when driving prices, we have to wonder if we were better off when true "technicals" drove the price of grain, not some suit in New York buying contracts of corn or beans, neither of which he has ever seen in his life.
What in the big picture of supply and demand changed today? Absolutely nothing. I hope some of the big money people lost their shirts in this downturn. jmo | |
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Interesting Talk with ADM merchandiser
