This week we saw corn drop 15 cents between Tuesday, September 3rd and Thursday, September 5th. Basis was pulled lower by the southern harvest and grain movement up river. Soybeans picked up a penny during that same time period in a lull before harvest pressure begins to weigh on the market.
Corn dropped on average 15 cents this week as the market finished rolling out of September and into the December contract. On average Ethanol provided little support in the cash market tumbling 15 ½ cents this week as well. Harvested southern corn is impacting the cash market significantly and pressuring basis lower. In the week of August 24th to 31st more corn floated up river on barges (53,900 tons) at lock 27 than corn headed downriver (23,572 tons) helping to supply inland grain demand. The effects of harvest should continue to pressure corn basis throughout the U.S as we move deeper into September.
Soybean basis improved by a penny this week between September 3rd and the 5th. The market was mostly mixed with Soybean plants dropping basis by an average of 5 cents, while the average basis at river terminals increased by 1 ½ cents.