The Grain Gab
To say that the grain markets are bullish has been an understatement as of late. Geopolitical, a world and US grain balance sheet that continues to shrink, and inflation have been the main driving factors and a collapse in grain prices don’t appear to be on the horizon. Remember that markets make their highs when things are the most bullish.
Dry weather continues to persist in our territory and wheat conditions are declining accordingly. Wheat basis has bounced off its lows that were seen in March when spreads inverted and put most all end users on the sidelines for a few weeks. As more is known about this crop one would suspect that wheat basis will follow a similar path for better or worse.
Corn basis continues to remain firm for both OC and NC. NC values are historically strong for this time of year and some feed yards are nervous about the lack of moisture that this crop is going to be planted in. Fat cattle margins aren’t anything to brag about and could eventually put a top on basis if yards don’t remain near capacity.
Milo basis has dropped well of its highs from harvest and pre-harvest as China hasn’t been buying any OC in recent months. NC milo basis isn’t seeing much if any attention from the export market at this time and will run a discount to corn until the Chinese step in and go to buying.
Just ahead of fall harvest last year we got our Frontier Ag, Inc cellphone app up and running. We got quite a few customers to download it over the last few months and the feedback has been very good. I have attached the instructions of how to download it and would encourage you to do so ahead of wheat harvest. Please reach out to the location that you deliver into and make sure that they get your cell phone number in our accounting system so that you can view all your data. Please make sure that you let us know which accounts we will need to add your cell phone number to otherwise you won’t be able to see everything in the app.
My wife (Lindsay), daughter (Payton) and I moved to Goodland almost 2 years ago and we are all glad to be back living in small town America. We would enjoy seeing more rain than what NW KS has experienced since last summer, but I think we can all say the same for that. Living in rural America is a great place to raise kids and we look forward to being here for many years to come. I recognize a lot of our patron’s names as I see them come across my desk when you sell your grain, but I still have many faces to put with names and I plan to continue to work on that as time allows.
Thank you for your business and Frontier Ag appreciates your continued support
Grain Marketing - Delivering Quality Risk Management Solutions
The Grain Marketing Team at Frontier Ag, Inc is here to help your bottom line. We offer contract types that provide maximum flexibility with limited risk.
Frontier Ag, Inc has expert staff that understands and offers complete risk management packages. We design grain marketing, input financing, and crop insurance plans that will let you sleep at night.
Robert Crow – Grain Division Manager