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

The Vance Crowe Podcast

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How Does the Grain Elevator Work?

The grain elevator is in between the producer and the processor. They want to pay the farmer a good price, have control of the bushels so that rather than just renting out space, they're able to merchandise it. Partially because of competition,. The other reason is, because of the micro economic supply and demand, all of that grain coming to market at one time means that's typically the low point of basis.

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