6/8/2023
Jun 08, 2023
The time has come locally that all the corn processors have plunged to the September futures and take some risk off the table by getting out of the way of the July futures. In doing so most of them took some of the spread with them, so while +75 the Sept might look good on paper, it was not favorable for the cash price. The July/Sept spread traded out to 87.25 cents this morning before finishing back near 81 cents on the day. That spread will stay volatile, so those you of with July basis contracts better be paying attention. IF people get covered for their July futures needs that spread could implode and do so rather quickly. I would be pricing your basis contracts sooner than later. I have said it many times before, but I will preach it again. Invereses never have a good ending, so hanging on to old crop corn is risky and will be painful at some point as old crop and new crop prices come together.