Cash Grain Prices Improving as Harvest Wraps Up

AgriBusiness 11-06
Elevators in Illinois looking for grain to buy helping to improve basis price. ( FJM )

As harvest pushes toward the finish line, some local grain buyers are already adjusting prices to keep grain flowing off the farm.

"Two weeks ago we saw basis moves in our area at the local processor," explains Mathew Bennett of Bennett Consulting during an interview with AgDay-TV host Clinton Griffiths. "For the week we were actually down as far as futures prices were concerned but the cash price of corn was up at the end of the week."

Bennett says basis increased 20 cents overnight in his area. 

"Why have we seen it get so much better in my part of the world here in the last week to 10 days?" asks Bennett rhetorically. "Guys are getting harvest finished and there's not a whole lot of cash corn to buy."

He says farmers have already decided to store this year's crop in bins, in bags and even on the ground.

"We always get wrapped up pretty heavily in futures prices," says Bennett. "If you can manage basis adequately you can win the game."

Listen to Bennett's full comments in the clip above.