PIK-AND-ROLL PRESSURES CORN BASIS VALUES
Changes by the USDA in its posted county
prices have successfully increased PIK-and-roll activity as a
way to pull corn out of government stockpiles, with the
resulting jump in free supplies pressuring terminal corn basis
values, cash grain dealers said.
    Processors dropped spot Chicago corn basis bids three cents
after covering most of the April needs this week, with river
corn basis bids following CIF Gulf corn values lower.
    The surge in PIK-and-roll also pressured corn futures, with
May settling today down three cents per bushel at 1.58-1/2
dlrs, near the contract low of 1.49-1/4 dlrs. But unlike in the
past when lower prices slowed country movement, now lower
county prices widen the differentials with the corn loan and
make PIK-and-roll even more attractive, they noted.
 Reuter
