Is a Rally Due in Corn, Wheat and Soybeans?

If a a grain producer is reading this report, try to realize your grain buyers and your local elevator managers this year are possibly having a hard time of it.  Basis is wide, the carrying charge is extended and with prices going down, the combination keeps farmers from selling. The buyers and managers are being told if they want it, pay more, a lot more and narrow the basis. Many buyers see a large crop and are wondering how many extra people will I need when the avalanche of grain moves off the farm into town, especially when so little is contracted or priced. 

On the other hand, elevator mangers and buyers are also being called to make sure grain orders are secure. The dog food maker who has had a standing order for 15 years wants to know when they can pick up corn, soybeans, or meal. The feedlot run by the brother-in-law who has a couple thousand feeder cattle losing money from the day they were put into the lot wants to know when his trucks arrive will the corn will be ready. The distiller who doesn't have storage expects shipments for specific times and dates and tells the manger he will go elsewhere if it can't be guaranteed. (more)

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