We prefer to hold existing basis contracts, anticipating higher prices in 2017.
If you need to price corn by year’s end, use a rally over $3.50 on December futures. Short-term technical indicators are turning negative, but the overall market action 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.
With talk of smaller acreage, we are in no hurry to price new-crop corn.
The last update indicated harvest was 75 percent complete. With cash prices still holding relatively well and storage tightening, it invites a short-term pick up in producer sales. This week’s elections and the USDA’s November crop report both present short-term unknowns, especially the former. Corn demand remains robust, which should temper price slippage.