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Kansas farmer Adam Baldwin describes a mid-July sorghum basis that was $0.55 over corn, versus a typical corn premium of about $0.30. He has forward sold more sorghum than usual and says the price ratio is changing planting decisions west of Interstate 135.
A sorghum basis premium over corn encourages acreage shifts and forward selling, which can tighten nearby supplies. The story reflects existing price strength rather than a new shock.
hpj.comKylene ScottAug 21, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
