Pressure to Move Grain

Published on: 15:03PM Jun 04, 2010
The $1.05 spread between July 2010 and July 2011 wheat contracts will motivate elevators to buy and store wheat to capture the carry, says Bob Utterback of Utterback Marketing. "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," he notes. 

The bottom line: Possibly very weak corn basis this fall.  

"Plan now," says Utterback. Choices include 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.

For more information from Utterback on this topic: