By Tim Guza, CHS Prairie Lakes Grain Department Manager
The past couple of weeks, we have been seeing quite a bit of pricing opportunities in the markets.
Weather has been a significant player this planting season. The rain keeps falling and the US is only about 60% planted with corn. Later today (May 28) we will see the actual numbers. We are also wondering what will go to preventive planting versus what will get planted and be eligible for the MFP (Market Facilitation Payment).
With the current rally in the corn, basis has backed off 18 cents. We do not have a lot of business on for July and beyond so it may become more difficult to find homes for corn. This will keep pressure on the basis. Another interesting thing that has happened since the corn market rallied is the December to July spread has narrowed 23 cents. We currently see all the carry in the market to be between the December and March.
With the current market situation, it is important to stay in tune with your marketing plan so opportunities are not missed. Keep our CHS Prairie Lakes grain team in mind for all your marketing needs.
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