Grain markets are adding to their impressive gains from yesterday with additional strength this morning. Interestingly enough, the soy complex is leading the way higher but seemed to do so around 4:00am, well before the news of China cutting interest rates hit newswires. Basis is really firming, especially off the PNW where one major commercial elevator is thought to be caught short on some basis with limited supplies left in the country to cover it. Corn basis is also getting hot with interior locations paying at or above record levels. There are two schools of thought about remaining grain supplies in the country: 1) the farmer has the grain and is being very patient marketing it, or 2) he doesn’t have it and basis is reflecting it. Both have implications for the June 29th stocks reports.
Country Hedging, Inc.
The Right Decisions for the Right Reasons