Cash grain markets felt pressure this week from river flooding and the inverse carry in the futures market. For the week, US average corn basis slipped 3 cents a bushel while average spot soybean basis was off 2 cents a bushel.
Flooding along the Illinois River left many grain elevators shut down at the beginning of the week which caused bids to ease in these areas. However, the Ohio river was largely unaffected so basis levels from Southern Ohio to Southern Illinois found some strength. At the Gulf export market, corn basis was up 4 cents a bushel as limited supplies were able to move to the Gulf. For ethanol plants, average corn basis was off 3 cents a bushel with Eastern Cornbelt plants showing more weakness this week than Western Cornbelt plants.
For soybeans, Gulf basis lost 3 cents a bushel as soybean exports continue to decline along normal seasonal lines. Export sales hit a marketing year low this week with net reductions reported of 206,300 MT on the old crop. River terminals were off 4 cents a bushel for the week while soybean crushing facilities bid up soybean basis by 4 cents a bushel.