This week: How to take advantage of a great basis.
It is rare to get a good basis and high futures at the same time. Right now, nearby corn futures are at the bottom end of the trading range. That is the bad news. The good news is that cash basis levels are at some of the best levels we have had in the last five years in the western Corn Belt.
Here are two alternatives:
#1: Sell the cash corn and then replace with December 2019 call spread.
#2: Fix basis below the July 2019 futures. Get the corn moved out. Then make sure you use any rally in May or early June to get the futures price set.
The cash basis right now is about as good as it will get. Use it.