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Last December, when we made our incremental cash corn sale taking us to 75% sold, the local bid at our ethanol plant briefly topped $5 bushel. That was the last time the cash price of corn traded $5 bushel here. Their bid dropped to near $4 bushel with some local markets briefly falling sub-$4 bushel on the John Deere lows made late last month. Last week the ethanol plant texted out a flash cash bid of $4.50 bushel for FH March delivery and about 2 ½ hours later a second text said they had covered their needs pulling the bid. They quickly acquired inventory as broken farmer psychology had set up their sale. The commercial strategy is to first break the market, crush farmer psychology and then bin doors fly open when they bid up. They will buy more corn when they break the market again too as farmers are worried that they missed the rebound. Even with the late week CBOT strength their cash bid recovered to 4.50 for a second chance.  Better not have your phone set on vibrate and miss these calls if you have corn for sale. Would not be surprised to see a good retest…

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