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A golden opportunity for grain businesses to create a win/win/win

A golden opportunity for grain businesses to create a win/win/win

High futures prices are offering an opportunity for growers and buyers of grain to achieve above average margins.

In order for that to happen, growers must sell high prices and elevators must drop their basis

When elevators and farmers both make good money, the community benefits too. Win/Win/Win.

"Easier said than done, Phil."  Maybe so. But you need to make margin to stay in business, you are providing the service of paying margin calls on short futures, you will be the one staying open long hours to handle these bushels, and it is not unreasonable to be compensated for that - especially when you are still paying a higher cash price than you have in many years.

You will be surprised at how little effect, if any, a lower basis has on your volume. Your competitors may be waiting for someone to take the lead on this.

Drop your bid, make more money, pay more to growers, and let the benefits come to everyone.

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