Spot corn and soybean basis has made slight gains so far this month. Spot corn moved up half a cent while spot soybeans increased a penny. The Gulf has done little to support both markets as corn basis gained one cent and soybean basis actually lost four cents. Barge rates also hampered the cash market as prices along the Illinois and Ohio Rivers have gone up couple cents in the last nine days. Rates on the Ohio River are currently sitting four cents above their five year average.
Taking a look at the carry in the cash market, storage for both corn and soybeans looks unfavorable. The average cash forward contract carry in the corn and soybean markets is 9 cents per bushel for five months of storage.
This compares to a nearly 22 cent carry in the corn market recorded at this time during the last two
years. The soybean cash forward carry is looking similar to the situation in 2010 when the carry was 10 cents storing until July. Last year the soybean market provided a 25 cent carry with five months of storage.