The futures market is acting differently than it has in the past. Chiodo Commodities market analyst Marc Chiodo says the futures trade apparently divorced itself from the fundamentals. “The cash basis is telling us we’re quite a bit tighter than what the numbers have been telling us,” said Chiodo. “We went through this last harvest with abnormally high numbers; at least 30-to-50 cents higher than we’d normally see at harvest time.” Chiodo believes the basis levels provide a better perspective on supply and demand.
