Posted 7/11/2019 12:50 (#7608828 - in reply to #7608196) Subject: RE: Who has an abnormally good basis?
Be interesting down the road to see if they have to do some scrambling to find the corn they thought was there. You’ll know, especially if you see basis levels start to appreciate.
There is no doubt in my mind that there are pockets of excess corn inventory, especially in areas that typically don’t have record yields two to three years in a row, and don’t really have the infrastructure in place to handle that kinda volume.
We have that scenario with soybeans here where we are at, we had three years in a row of record soybean yields(last year was okay, but the three previous years were phenomenal) in a area that traditionally only has okay soybean yields.
We’re covered in soybeans, basis has hovered between $.80-1.00 under and the processors are making money like they are robbing banks.