Cash Strategist 8/30/2023
The U.S. harvest season is starting in southern states, and before long, we will see early activity across the Corn Belt.
This may be one of the most anticipated harvests in recent history given the wide variance we have seen in crop conditions and production forecasts. Early crop stress caused some yield concern, but in recent weeks, this attitude has changed.
Rains started to become more routine in late July, and these improvements carried over into August. This caused risk premium to be pulled out of the market, which weighed heavily on futures.
Not only have futures become volatile in recent weeks but so has basis. Basis is the spread between cash bids and futures values, and in recent weeks, this difference has widened.
One reason is the approaching harvest, but heavy movement of old crop inventory ahead of...
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