While the futures market has paid very little attention to planting delays and the lack of crop maturity, Kerns and Associates economist Dr. Steve Meyer says the story is with the basis. “There are places in the Eastern Corn Belt that are 75 over for basis. There may not be any under basis in the United States given the problem we’ve had with this crop.” End-users, like ethanol plants and hog farms, may want to lock in their supplies now. “Given where it is right now, I don’t know if there is a lot of bottom side to this thing. Strategies that would put a lid on your costs and leave the bottom side open would be pretty smart, especially if you can execute them for cents per bushel and that’s out there. I think producers ought to be talking to their marketing advisors about that kind of strategy.”
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