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NE ND | If prices continue to slide and farmers hold grain waiting for better prices, I expect basis to narrow some temporarily to shake grain loose and fill elevator/end user needs. It’s all a timing thing though, because as soon as they have what they need, basis will widen back out as they know there is lots of product out there. If prices get back to where we were 2 weeks ago and even rally from there, I think basis will widen with it as a flood of grain will come to town after this flush and there will be lots of forward contracted grain.
These are my thoughts for the next couple months. Before the combines start rolling and we actually have a fair idea of what the crop is like.
Just my $.02.
Edited by gthompson97 6/20/2018 13:04
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basis movement
