Basis management

By Jon Scheve, Superior Feed Ingredients, LLC

Over the past two weeks, it’s felt like there were 4 Mondays and 4 Fridays. During this time corn futures have rallied 20 cents and beans 40. That same period saw basis drop as futures continued their assent as there was significant farmer movement in both crops. Nearly half of the futures gains of the past 2 weeks were lost Jan. 3 in both corn and beans.

Traders are likely waiting for one of the biggest reports of the year on Jan. 10 before they pick a direction to push this market.

As I have previously shared, I have 100% of my 2024 bean futures priced at the equivalent of $11.30 on January futures. On Dec. 10, I noticed that posted basis values began to fall in my area, as shown in the chart below.

I was then offered an opportunity to sell my beans, picked up on my farm, for 10 cents above the best posted value I have seen all season in my area, so on Dec.… Continue reading