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Cash Strategist

transportation

There has been a general shift in the global commodity market that has greatly benefited the United States. For the past several years, the market has been supply driven as global production has been high. This allows buyers to wait to cover needs, which weighs on commodity values. We are now in a demand driven market, which favors the seller. 

This change has been very apparent in the domestic market. Harvest pressure was very short lived this year, and in some cases, bids are actually higher now than prior to crops being harvested. This is most reflected in basis values that never really weakened when new crop bushels hit the market. 

Farmers are being tight-fisted with their inventory this year, which is forcing buyers to push for movement. This is especially the case in regions of the Corn Belt with less than anticipated production. Production shortfalls are most notable for corn, especially in fields that have had corn planted for numerous years. 

This shift in supply and demand has been noted in the ...




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