Plan Now for Poor Fall Corn Basis
Consider storing your corn at home this fall, locking in fall-delivery basis anytime it is close to normal for fall delivery, or contracting direct with livestock feeders or ethanol plants.
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There are several reasons to expect poor corn basis this fall, according to Bob Utterback of Utterback Marketing: The $1.05 spread between July 2010 and July 2011 wheat contracts will motivate elevators to buy and store wheat to capture the carry. "In addition, both farmers and elevators still have alot of poor-quality corn in the bin they need to blend off with better quality 2010 corn. All this means less storage space for new-crop corn in the fall, and more pressure on elevators to move corn into market channels."