After harvest, we saw very little grain movement. However, Jim Bower says, as we come to the end of the year, a jump in basis levels is taking place to try to get some grain moving, “This is especially true in the Western Corn Belt, but we are seeing some signs in the Eastern Belt as well. A strengthen of basis levels to try and get producers to unlock the bins and sell some grain.” He added that some commercial interests are needing the grain to meet short term needs. He said several of his clients have taken advantage of this opportunity.
At the farm show last week, there was a lot of talk about planting more soybeans in 2018. Bower says, given what is happening in South America, it may be too early to make a final decision on soybean acreage, “The critical time for Soybean yields in Brazil in mid-late January and for Argentina, early February. It may be a bit premature to make any final decision on soybean acreage until we see what the yields in South America are going to look like and how they compare to what the USDA is forecasting.”
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