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GeoGrain Weekly Comments

Cash Grain Comments for Week of November 21st

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Cash grain markets found strength as futures prices were down on the week. Both spot and corn bean basis levels posted impressive gains, advancing 5 and 3 cents a bushel, respectively, on the week.

Corn found strength from slow farmer sales as harvest wrapped up as well as underlying demand. Ethanol plants as a group were up 7 cents a bushel with 10 cent gains fairly typical as plants push well above harvest lows. Production at ethanol plants for the week were above last week’s marketing year high coming in at 970,000 barrels per day and sets the year-to-date total at 4% above last year. At river terminals, barge rates fell sharply on the week helping improve basis levels at river markets.

For soybeans, basis levels mostly improved and the falling barge rates helped push basis levels higher there. However, soybean sales were on the light side of expectations with only 483,000 MT of new business as compared to expectations of 700,000 to 1,000,000 MT. For bean plants, basis levels were mostly flat but overall slightly improved with a 2-cent gain. Monthly NOPA crush for October was the strongest on record for soybean crushing, 7 million bushels above estimates.

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