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| Ugly Valentine’s Day for the grains. New lows in both corn, soybeans, KC wheat, and MPLS wheat.
Wheat got smacked as well but the spreads continued to inverse.
Tomorrow we get the USDA outlook forum. Expect bearish.
Overall was a lot of negative outside pressure as well as the funds preparing for tomorrows report where we will likely see very large carryouts and yield projections.
I think the next few days after we get this report out of the way will be the process of our markets trying to put in our lows.
The biggest thing the grains have going for them is the fact that the funds are extremely short. Do they need to cover? Well no not if guys are going to have to continue to sell.
If you need to be moving grain here soon, you need to be proactive.
The same thing goes for basis contracts. There is nothing wrong with using them, but it’s not the best option out there. You need to be proactive if you are using them.
Why would a buyer tell you to do a basis contract? It could be their way for you to supply them grain without them having to buy it…
Listen to todays audio where we go over why basis contracts aren’t the best idea, what to do if you have basis contracts, utilizing bids and carries, and a bunch of different strategies for each scenario you might be in marketing wise
Listen Here: https://txt.so/24WwYJ
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Market audio comments - USDA outlook tomorrow
