Corn and soybean basis fell this week as rallies in the futures market helped entice farmer selling. Corn basis was off 4 cents on average for the week while soybean basis was off 1-cent a bushel.
In the corn market, a 40-cent gain in nearby corn futures over the past two weeks coupled with discounted deferred prices helped move grain into the pipeline. Weak export demand continues to take its toll on the Gulf, with corn basis plummeting 9 cents this week. River markets saw similar hits with losses of 5 to 10 cents fairly common at key markets in the Midwest. For ethanol plants, they backed off on basis by 6 cents a bushel for the week.
For soybeans, basis levels were off 1-cent a bushel as falling futures for much of the past week kept pipeline supplies fairly tight. Grain buyers continue to offer premiums for spot delivery versus deferred delivery. However, some buyers are backing off basis as the inverted carry and the prospect of large South American supplies hitting the market keep basis levels in check. At the Gulf, basis levels were off 13 cents a bushel on the week but river terminals fell only 2 cents a bushel but some areas of the lower Mississippi and Ohio rivers saw much deeper basis losses. Soybean plants were mostly unchanged on the week.