Posted 10/16/2020 08:07 (#8548447 - in reply to #8548417) Subject: RE: Milo basis from cash to newcrop
Around here the wheat is going in the ground regardless of whether you get it up or not. A lot of the acres were prevent plant from being too dry this spring. So insurance difficulties would make planting milo tough next year.
As far as the milo price.............it reminds me a lot of 2015. I hit that one pretty good and sold milo for quite a bit more than corn price then. It wasn't normal. But even back then you couldn't contract very well for 2016. No one is going to stick their neck out on that inconsistent demand deal.
Current milo price at the elevator here is $5.04. Corn is 70 cents back. Milo for next year is $4.20 and corn is $4.00. Even that isn't normal. I don't think there's an end user anywhere that is paying that for milo. It is all getting railed out to china now and the elevator owns the unit train loader. I bet Seaboard isn't getting any milo for sure. The Perryton TX bid is 50 cents lower than the elevator 5 miles from my house. Amazing! That's over a dollar more than normal. China has to be taking all of the milo they can find.