$5 Corn Bids Not High Enough?

Agday Analysis 062519
Corn in bin ( Farm Journal )

Grain markets remain mixed ahead of USDA's acreage report due out on Friday. Even as traders watch for indications about 2019 production, prices for the major grains remain much improved compared to a month or two ago. Farmers with part of their crop still in the bin are starting to see basis improve, especially in the eastern corn belt. 

"We're seeing the real market heat up and we're seeing bids kind of heat up," Angie Setzer of Citizen's Grain tells AgDay's Clinton Griffiths. "I tell you most of the farmers and I'm working with are not in a big hurry to move what they have."

Setzer says that even as a grain buyer she's having trouble getting grain to move.

"A [cattle] feeder last week asked me to throw out some $5 numbers and see if I can get some $5 corn bought," says Setzer. "It did intrigue people but it didn't get any bushels bought."

 She says in the parts of the country facing significant production declines, there's likely to be a hard push to buy bushels. 

"I'm looking at reduced wheat production, reduced corn production and a reduced bean production coming at me," says Setzer. "So I'm going to be holding on to old crop so I can actually take part in what happens in the new crop structure."

Setzer says if production looks good in your area, it's going to be hard to see basis strengthen in the next few weeks. 

"You've got to know what is taking place around you and trade accordingly," says Setzer. "Don't don't hope for someone else's market."