|
| It seems like in a carry market the basis will always be wider in the deferred months. The buyers in my area adjust basis to take the carry out of the market, but why? I can understand keeping the carry lower than storage costs, but a lot of the times the cash bid will be adjusted so there is only 1 or 2 cents of cash carry. I'm 100% hedged on 18 crop but the basis is being bid hand to mouth and I have everything in bins so now I'm forced to wait to set basis until I deliver. I've seen where the elevator will bid 10 under all winter for May but when we actually get to May they are bidding 5 over to fill their needs and I probably would have set it for 0 back in December. | |
|
Question for Grain Merchant
