If you want to take profits on old-crop basis contracts this calendar year, take them now. We continue to see higher levels in 2017, thus prefer to hold them.
If you need to price corn by year’s end, make those sales now. Technical indicators suggest this rally may not last much longer. Nevertheless, the overall market action still suggests the long-term outlook is positive. Hold basis contracts you might have, but it may be late winter or spring before we price those and add to sales.
Demand has increasingly become a focal point, and thus far, there’s reason to expect the current forecasts to hold up. Export shipments may sag somewhat in the short term, with loading capacity diverted to soybeans. China remains a mystery, especially after this week’s purchase of 204,000 metric tons of grain sorghum from the U.S. Our corn yield/production is expected to drop slightly yet.
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