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| As promised, some more info from our central trade desk about our impact, or lack thereof, on the market:
"When the market is oversupplied, end users begin to get signals—more and more people are calling looking to sell, they aren’t having to work as hard to find bushels. They sense the oversupply. Prices begin to trend down as a signal to producers to not produce as much product as they currently are. Regardless of who makes the sale, those end users are going to get coverage at a price that the market works out. There will be some variation in that price, but markets trend toward the mean. That’s what is happening today, and if you talk to end users, they will tell you they are getting calls from people they’ve never heard of before, from farmers, from anyone under the sun trying to sell them corn.
The reverse is true when the market is short. End users have to work harder to find bushels. Fewer and fewer people are calling them with offers. They start to book more immediately instead of waiting for the market to come to them. They sense the shortage. Prices begin to trend up as a signal to producers to produce more product. Some end users will buy at better values than others, but again, the market will trend towards the mean.
Pipeline is incapable, on its own, of moving the market up or down. The market was, is, and always will be bigger than Pipeline. We aren’t the only buyer and we aren’t the only seller. If we are paying too low of a price, the market is going to let us know and we won’t see any bushels come across our books. If we’re paying too high of a price, we’ll see more bushels than we planned coming on our books. Our goal is not to move the market one way or the other, it’s to provide a bid price and an offer price every day to the marketplace."
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