What should I do with the rest of my old crop?
Apr 11, 2013
In my opinion producers holding unprotected old-crop bushels are beginning to play with fire. The "basis" could continue to strengthen for a few more weeks as ethanol plants and sources in the poultry and pork industries bid up for supplies. My fear is that more corn imports eventually starts hitting US shores at about the same time ethanol plants start to wind down and shut the doors for planned maintenance. Remember, a lot of ethanol executives have were talking about closing down the month before new-crop bushels became available. Basically electing NOT to bid up for the limited supply of old-crop corn that remained in circulation, My point is once the end-users can see the finish line is just around the next corner the bids for old-crop supplies may dry up much quicker than you had anticipated, especially if corn imports are also more readily available.
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