By Jon Scheve, Superior Feed Ingredients, LLC
Not much is exciting the markets right now beyond the coronavirus, and until more is known about its effects and how it spreads, the market will likely remain under pressure.
Preventing the spread of “free” DP
February is when free storage from “free” DP (deferred pricing) starts being advertised throughout most of the Corn Belt. While some also call it “price later opportunities,” or “delayed pricing” it refers to when farmers sign over their grain to an end user, and then wait to price the grain at a later date hopefully at higher values.
On the surface, DP seems like a win-win for farmers and end users. DP is a great way for end users to get a supply of grain during the winter. And, farmers can move their grain now when they aren’t busy, and price later during a potential rally. However, DP actually ends up hurting ALL farmers, those using it and those that do not.… Continue readingRead More »