With the rivers opening back up, Warren-Henderson Farm Bureau President Jake Armstrong reports corn and soybean deliveries will be ramping back up this March, alleviating pressure off the ethanol plants:
“With the rivers opening back up, that basis has strengthened. We have an opportunity here once the barges get moving and they can start turning, I think that will help everyone. If you have tried to deliver corn in the last two and a half months, you feel my frustration of only open until 10, only open until noon, or closed the next two days, so hopefully with the rivers going and having more markets in competition, that will alleviate the pressure off the ethanol plants and we can all start moving things in a timely fashion. Continue to keep your eye out on that May carry, that July carry that is still there. Run your numbers and make sure that just because there is more money in the future means you are actually making it, your cost and carry doesn’t exceed the actually carry. Then just be mindful of when you are selling grain.”
Armstrong says there is a nice premium to May right now, but any sort of delays, extended spraying, or side dress could cause disruptions in deliveries.
