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#292 | Phil Luce; Commodities, Basis Trading, Grain Elevators

The Vance Crowe Podcast

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What Happened to the Futures Market?

In 2008 we had a run up that was not tied to a crop shortage or a fear of a crop shortage the futures just took off. And then in 2012 we had another big rally that was related to a drought prices went up it got stressful again. But what happened is between 2008 2012 the banks really started to demand more reporting from grain businesses. A lot of these lending relationships were based on the value of farmland property just kind of a collateralized loan. Now it's very much more there's a borrowing base that they fill out.

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