An unattractive basis is meant to discourage grain sales, but what happens when farmers are willing to sell even then (cash is getting tight, y’all) but bids disappear entirely? Then you have the grain marketing mess that is early 2014.
Chuck Penner (@LeftFieldCR), with LeftField Commodity Research, and Shaun Haney, that guy from RealAgriculture, sat down to talk about the current basis mess, if there’s a foreseeable end in sight and — wait for it — which crop Penner feels good be the best option for the ’14/’15 marketing year and, gasp!, which is carrying the most downside risk. That and more in the interview below.
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