Corn and soybean basis posted weaker values across the country this week as buyers rolled out of March into the severely discounted May contracts this week. On average, spot corn and bean basis posted a 5-cent per bushel loss on the week.
Corn basis continues to run exceptionally high for this time of year as pipeline supplies remain modest. An uptick in potential export business gave futures traders some enthusiasm this week which helped lift the market. At the Gulf, corn basis bucked the overall trend with a 2-cent gain, while ethanol plants as a group were off 5 cents a bushel.
For soybeans, basis levels continue to be pressured as the looming South American bumper crop is expected to cool the red-hot export business of the past 6 months. Nonetheless, China was an active buyer this week of U.S. soybeans although the bulk of the business was for new-crop deliveries giving little incentive for spot basis to move up. At the Gulf, spot basis dropped 2 cents a bushel while soybean crushing plants were off 5 cents.