I had a few producers call in and ask my thoughts about selling $8.00 corn. The basis has actually moved high enough in some areas producers say they are being offered close to $8.30 per bushel. As I told each of them on the phone this morning, anytime you can book sales above $8.00 I think you should be taking advantage of the situation. I actually have one client, who with these sales, will have ended up averaging over $8.00 per bushel this year on his crop...unbelievable!
There where also some questions about "re-owning" after making these sales. I just don't see any reason at this juncture, especially with such good cash sales being booked. . No need to jump back in at this level and risk the premium.
I also want to make sure those of you holding old-crop bushels understand the window of opportunity is narrowing for banking these types of profits. Remember the markets are always the strongest when the most fear is in the air. Right now end-users are worried that they might not have enough supply. What happens when some type of solution to this problem becomes more of a reality.
Be smart, don't be greedy!
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