Posted by: usset001 | February 18, 2013

Old Crop / New Crop Inverse in Corn

IMG_3868I have two things on my mind. One is the strongly inverted corn market. Nearby (old crop) corn prices have been running at a $1.50-2.00 per bushel premium to 2013 new crop bids. Six months from now there will be no inverse because old and new crop will be the same thing. Will nearby prices decline to new crop levels, or are you thinking that new crop values will rise to meet the nearby? I bet on the former, but time will tell.

The other thing on my mind is the American Birkebeiner – 54 kilometers of Nordic skiing bliss – which I will ski on Saturday. Skol!


Responses

  1. I would also expect to see the old crop move down to new crop prices, unless we stay dry. Winter moisture does wonders for lakes and rivers, but little to add to subsoil moisture. Much of western Iowa and Minnesota plus large areas of Kansas, Nebraska and South Dakota are all very short of subsoil water. We’ll need lots of little showers to refill that subsoil, and that is something that has not happened lately.
    Best of luck on the Birkebeiner.


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