May 06, 2013 | Grain Hedge Insights | | Views: 267

Corn Basis Finds Strength From Ethanol

Corn, soybean basis rebounded this week

Both corn and soybean basis levels found strength this week as tight farmer selling and the prospects of a late harvest next fall push basis levels up. Spot corn basis was up 2 cents a bushel while soybean basis climbed nearly 4 cents a bushel for the week.

In corn, basis levels at ethanol plants were a key driver this week as 10 to 15 cent gains were fairly typical across NE, SD & IA this week. In addition, shipping along the flooded IL river last week seemed to ease this week which lifted river terminal basis levels by a dime or more at key terminals.

For soybeans, export business continues to slow which pushed basis levels down at most river facilities over the past week. On average, river terminals were off 3 cents a bushel. At domestic soybean crushing plants, basis levels were unchanged for the week, but Eastern Cornbelt soybean plants seemed to see some strength with 10-cent gains fairly typical in this region.

More Articles

US dollar up sharply

May 26, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains are trading lower with corn down 2 1/4 cents, soybeans down 1 cent and wheat down 4 3/4 cents. The U.S Dollar is trading up over a percent this morning and crude oil has slipped 68 cents.  Japan is seeking to buy 100,262 metric tons of food quality wheat...

[Read More]

Weekly Cash Comments

May 22, 2015 | Grain Hedge Insights | Cody Bills

Basis levels for corn were off 1 cent for the week adding to the previous week’s losses, while soybean basis managed a 2-cent advance thanks to a sharply lower week on the futures market.

 

For corn, there was modest weakness along the river markets this week with a 3-cent loss at the...

[Read More]