Experts Weigh If It’s Time to Cash In On Abnormally High Basis Prices

Now may be the time to call your grain buyers. That’s according to the co-founder of AgMarket.Net, Matt Bennett last week. Basis levels are high in many parts of farm country, reflecting tight supply, strong demand and an overall unwillingness from many farmers to sell. One grain processor reported being 75 over on some and 90 over on others – approaching $9 cash corn.

What does that tell the market and producers? Processors may be finding it difficult to source corn. So if you’re sitting on bushels and you have some attractive bids in your area, evaluate if this is the right time to make the jump. But Matt suggests to act fast, as the high prices will likely run their course by July 4.

Read more on basis prices and cash selling here.