Corn and Soybean Basis Stalls
Corn and soybean basis was mixed across the United States this week with some river terminals showing positive basis gains while others terminals declined
Corn and bean basis were stagnate this week showing no change on average across the country over the past week.
At the Gulf, corn basis found modest strength of 4 cents a bushel but river terminals along the river were mixed. Areas south of St Louis have seen basis retreat while areas along the Mississippi river in Iowa and Illinois saw some limited positive gains. In the ethanol market, basis levels were unchanged on average although some buyers were noticeably weaker as basis levels fell 5 to 10 cents on the week.
For soybeans, river markets showed large variability with some terminals increasing basis 10 cents or more while others dropped by a similar amount. Strong export demand keeps underpinning river basis, but a negative carry in the futures market will keep buyers from wanting to hold inventory for long. For soybean plants, they showed a modest one-cent gain on average as crush margins continue to hold firm helping keep domestic demand strong for beans.