Posted 7/10/2019 19:15 (#7607521 - in reply to #7606523) Subject: RE: Who has an abnormally good basis?
And you could be right, but try this on for size, in our own situation our coop is grinding 160-200,000 bu./day between ethanol plant and feed mill. Within 45 miles of us are a additional 5 ethanol plants which are grinding anywhere from 60-150,000bu./day, also there are 7 feed mills that are grinding anywhere from 30-125,000bu./day.
In addition there are two major raillines that serve the area.corn moving out, corn moving in.
So i’m Fairly sure that the grain merchandising team which includes our location manager have a pretty good handle on grain supplies with in a 300 mile radius at all times, and in a possibly tougher supply situation like this year could be they’ve identified possible grain surpluses up to 8-900 miles away, and the only way this comes about is having contacts in the right positions.
So I guess what i’m Saying is that the guy whose very livelyhood depends on buying corn as cheap as possible, and making sure that the mills are always running, probably has a better handle on available stocks than some guy sitting in a gov. office crunching questionable numbers.