The chart above shows the current Corn basis verses the 5 year average for Tippecanoe County Indiana as follows: last week plus 8 cents, 5 year average minus 13 cents. Did the basis in this county peak as suggested by the chart?
Here is a recent conversation I had with an Indiana corn farmer:
Me – “Basis is at historical highs, how are you going to take advantage?”
Farmer – “I know basis is high, BUT I’m still hoping for higher prices, so I’m just waiting…”
Me – “You know that premium is going to disappear, right?”
Farmer -“Yeah, maybe I should sell, I don’t know why I haven’t, I think about it every day.”
Me – “You must take advantage of it now, let’s start by selling a portion and scaling out of the rest. None of us are good enough to pick the top.”
Farmer – “That makes sense, let’s start with 25,000 bushels. And let’s replace it on the board with your option strategy. “
Reply to lc@ccstrade.com with YOUR county/crop and I’ll send you deeper analysis, for first 10 replies!