Minnesota and Wisconsin grain basis improved significantly this week with corn up as much as 8 cents in most locations and soybeans up almost the same.  Several interior locations were weaker on soybean basis but it appears this will correct quickly after big harvest movement on stellar futures action.  It is a good idea to keep an eye on river basis and delay pricing with your local elevator when the river basis is going up and the local elevator is going down.  This may not be a case at all times of the year but at harvest it is worth taking a broader view of basis.

The grain market action, over the past couple weeks, has created fear in some and has created bullishness in others.  The Trading Range Index for soybeans is at 95 to 100% for all crop years.  Corn is on or near the highs for 2008, 2009, and 2010.   Milk is also setting new highs.

LET IT RIDE or COSTS WILL EAT UP THE PROFIT seem to be the talk when we see this type of market condition.  Let us call these sayings what they are, shall we.  

LET IT RIDE or HOLD ON- WE ARE GOING HIGHER are bold proclamations that GREED has found taken hold in your grain marketing plan.   Having torn up the grain marketing plan that you spent so much time writing down, you are going to LET IT RIDE.   Removing the disciple of this special piece of paper and the accountability it provides puts us back on the roller coaster we were trying to get off. 

Just as bad is the bold pessimism of the statement COSTS WILL EAT UP THE PROFITS.  Garbage!!  You have the opportunity of a LIFE TIME.  RIGHT NOW!!.  If you have a negative attitude in this environment please find someone who you can talk to about it.  You have a choice.  You can be miserable or you can hold your head up and take this opportunity by the horns and wrestle it into the best profit of your life time. 

A bull rider is looking for eight seconds of glory because he knows that he can only expect to hold on for so long.  You have a chance to lock in a portion of your production at fantastic prices and with some disciple you can protect the costs that produce a great grain margin.  The bull is staring you in the eye.  Right now!

 

Will you ride the bull or will the bull run you down? 

Ron Marshall

651-301-9185

ron@marshallag.com