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Corn basis in your area?

D

Dave from MN

Well-known Member
Central MN, basis is -$1.09 through -$.55. Filling my contracts and holding the rest. I keep hearing of places paying $.70 OVER CBOT? Thinking basis will come down, so not sure what to do, woyld like some protection of higher price.
 
In my neck of the woods in NWIA it's -17. We did have a high positive basis last summer but that disappeared this fall. Normally we're in the -30 to-50 area in the fall.
 
Here in North-East Iowa the basis is running $0.20 to $0.40 cents positive. The ADM sweetener plants keep the others up in the market. $7.81 for Nov. today at the close.

What does the future months look like for your area?? The price maybe not much different but the basis should be better. You are still in the tail end of the harvest season now.

If you have the corn in the bins and do not need it to feed then I would be contracting the months with the best basis right now. This crop is a little better than many thought. It seems like short crops get bigger when the real numbers come in. In 1988 the high for that period was in late July through Early August. That was true this year too. I sold some for $8.50 then. That is the high so far.

The high price is doing what it is supposed too, limit usage. Plus it is encouraging planting. There are many areas that will be planting corn this year. Many of them not top producing area but still able to make it with the high prices. So I would not bank on these prices lasting very long.
 
Local elevator is $-.08. I'm sure those near ethanol plants or other end uses are getting a better deal. Heard of some positive basis but nothing near $.70. If true could justify some trucking expense.
 
Southern MN, it's holding at -25 cents, but feel it will fall.

We got lots of corn here in MN, and your area up there espectially, they need to ship it out,so the basis went all to heck for you.

--->Paul
 
Don't tell the news media that the crop is better than expected. They have to keep up the hype so that the retailers can continue to raise prices using the drought as an excuse and keep us in a continual tissey so that we will panic as usual and make irrational decisions. But what's in an excuse....just an excuse.

Mark
 
Interesting. One of the largest recipients in my area is one of the biggest operators. Buying up all the land they can.
 
I have not seen any of the outside overflow corn bunks being used around here this year. The river is low and the barge traffic is slow with winter shut down not that far off. I expect the price to go up, (almost for got the mold problem in the corn). Just my thoughts and worth what you paid for them.
 
Basis is the difference between local cash price and nearby futures price. Not the ignorant answer below.
 
Isn"t it logical that if program payments are on a per acre basis, that the BTO gets more than the STO? More investment, more risk. If it"s all so lucrative, why aren"t you doing the same?
 
Basis is the difference between the local price and the Chicago Board of trade price. An example: Chicago price of $7.40 and your local price is $7.10. That would be a -$0.30 basis.

Here locally in North-east Iowa we may have a positive basis much of the time. The closer you are to the end user the basis will be less or even negative. So a guy in North Dakota that is five hundred miles from the end user point may have a -$1.50 basis.

When marketing the goal is to get the best price but with the lowest basis as well. This way you should be maximizing the local market.
 
.20 over in NW in. Ethanol plants, sweetener plant and Ohio river fairly close I guess. Most corn is done here. Soil was everything. Did a farm on average soil Wednesday that made 25, usually 150. Got 170 on black soil that's usually 200 two weeks ago. Did that 25 bpa corn on Wednesday, then 55 bpa beans yesterday (good soil). How about that for a weird deal.
 
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