Traders send grain ‘over Chicago’ in unusual corn-market move

Nov 22, 2019 at 09:34 AM CST
(Bloomberg)—The most-delayed U.S. corn harvest on record has divided the Midwest market, jumbling trade routes for the grain that usually flows south. Signs of ample global supplies have weighed on Chicago futures, spurring farmers in eastern areas to hold back supplies in the hope of better prices. They were hurt more by a spring-time deluge than growers in the west. But their hoarding has pushed up the region’s prices in the physical market above futures, while those in the west remain below—creating what’s known as a basis arbitrage opportunity.

Nov 22, 2019 at 09:34 AM CST

(Bloomberg)—The most-delayed U.S. corn harvest on record has divided the Midwest market, jumbling trade routes for the grain that usually flows south. Signs of ample global supplies have weighed on Chicago futures, spurring farmers in eastern areas to hold back supplies in the hope of better prices. They were hurt more by a spring-time deluge than growers in the west. But their hoarding has pushed up the region’s prices in the physical market above futures, while those in the west remain below—creating what’s known as a basis arbitrage opportunity.