Corn damaged field by derecho storm in IowaWhen the derecho system moved through the Midwest in early August, one of the projected long-term implications was on the cash grain market, namely in how elevators and terminals would use basis bids to manage supply in areas where storage was shortened because of destroyed or damaged bins. Some saw the likelihood of sharply wider basis spreads as grain buyers worked to trim incoming new-crop supply, while others thought the storage shortage might cause bids to tighten closer to the cash price when they’d ordinarily be considerably below the cash price. One analyst says the latter has been the case now that harvest is in the homestretch, with a lot of elevators reporting basis bids of around 10 cents/bushel versus projected 40-cent-under basis bids for new-crop corn for December delivery. See more on the situation and how you can market grain into the post-derecho cash marketplace.