Ben Brandvik - Grain Marketing Team
Due to the impending large crop, corn basis feels defensive. Basis levels today are 10 cents better than they were 1 year ago. Farmer selling of new crop corn has been unusually slow this marketing year, and at some point there will be a glut of local corn that hits the market and will likely depress basis and futures markets as harvest progresses.
For those of you who entered our Easy Action contracts, the final futures price will be announced soon. We anticipate that the price will be better than today’s prices.
Sorghum basis is 33 cents better than we were 1 year ago. Basis levels are better than normal because of reduced planted acres in the region due to sugar aphid fears. Of course, the late maturing crop has reduced farmers’ willingness to sell ahead. Many dealers are currently betting that China steps back into the market as a buyer of sorghum.
Wheat prices have been mostly lower since the apex of the rally on July 5th. Wheat has drifted down over $1.00 since that time. I feel that seasonal lows have been made, and values should tend to increase in the winter months. I encourage our customers to consider contracting next year’s wheat. 2018 new crop is over $4.00 per bushel, which is 60 cents higher than old crop wheat.