September 10, 2013 | Grain Hedge Insights | | Views: 303

Corn Basis Drops Sharply

Corn basis dropped 15 cents as new crop supplies become more available in northern states

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.

More Articles

Soybean Cancellations

July 02, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains traded lower with corn down 2 1/4 cents, soybeans down 8 3/4 cents and wheat down 9 1/2 cents this morning. Crude oil is trading up 25 cents and the U.S. dollar is down nearly a quarter of a percent.

 

On Wednesday, the EIA ethanol production report...

[Read More]

Grains Pause in the Overnight

July 01, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session we have pulled back a bit with corn down 7 cents, soybeans down 5 1/2 cents and wheat down 17 cents this morning. The U.S. dollar is trading higher by a half a percent and crude oil is down 79 cents this morning.

 

Yesterday’s quarterly grain stocks and planted...

[Read More]

Acreage Expectations

June 30, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains were mixed with corn up 1 cent, soybeans down 5 3/4 cents and wheat down 1 1/4 cents. The U.S. dollar is trading 1/2 a percent higher and crude oil is trading up 24 cents. Two major USDA reports will be released at 11 AM CST including the Planted Acreage...

[Read More]