This past week, the national average basis levels went to triple digits. “That includes the center Cornbelt, even they are seeing the nearby soybean basis of $1 under,” said Elaine Kub, who is a columnist for DTN. “That doesn’t really compare to $1.50 or $1.70 under around here. I think the storage strategy makes sense even without a short futures hedge right now based on basis appreciation which hopefully will come eventually, although it may be eight or ten months down the road.” Kub is the author of ‘Managing the Grain Markets: How Profits are Really Made’ and was featured in the RRFN series of market outlook seminars at the Big Iron Farm Show.
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.