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.