Basis Levels Taper Their Decline
Basis levels tapered their decline this week with corn basis off 2 cents on the week and soybean basis unchanged
Grain basis levels were mostly steady to weaker over the last week as harvest continues to add supplies to the pipeline. For the week, US average corn basis was down 2 cents a bushel while soybean basis was unchanged.
For corn, much of the weakness this week was confined to the Northern Plains and Western Cornbelt as corn supplies start to ease the premium offered at key end users. Ethanol plants as a group were off 5 cents this week across the US, but losses of 10 cents or ore were fairly typical in the Western Cornbelt. However, in far reaches of Northern Wisconsin, some grain buyers continue to hold strong with +50Z still being offered for fresh supplies. At river terminals, basis levels held mostly stable as strong export demand continues to underpin river markets.
In soybeans, basis levels were not as well defined with southern stretches of the country starting to show basis strength as harvest concludes while northern markets were generally steady to weaker for the week. At soybean plants, Eastern Cornbelt plants were generally steady to slightly higher on the week, while plants in the West were generally weaker. River markets were generally weaker for the week with losses of a nickel on basis being fairly commonplace.