August 19, 2013 | Grain Hedge Insights | | Views: 255

More Basis Volatility in the Grains

The national average corn basis slipped 2 cents this week while soybeans pushed 8 cents higher

Cash market volatility continued this week as tight near-term supplies combined with an outlook for ample production in the coming months keep buyers moving basis erratically. For the week, corn posted an average gain of 2-cents a bushel, while soybeans were up 8 cents on average.

In the corn market, basis levels at the Gulf were higher for the week, but rising barge costs are keeping river terminals steady to even in some cases weaker on basis levels.  Barge rates had been climbing in the past two weeks but have started to stall out in recent days. For ethanol, average gains across all plants was 2 cents a bushel for the week, but Western Cornbelt plants had numerous plants with double-digit gains, especially in the Upper Midwest were new-crop corn harvest will likely be late to arrive this year. Weekly ethanol grind was up 4,000 BPD rising for the third straight week in a row.

For soybeans, river terminals were weaker on average, falling 5 cents a bushel on the heels of higher barge freight and a falling Gulf market. For soybean processors, basis levels were mostly weaker but extreme volatility was common across plants as some buyers boosted basis by 20 cents or more while others were dropping basis. The NOPA’s monthly crush report for July showed 161 MB of total crush for US soybean plants, off marginally from the June number of 163 mb.

More Articles

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]

Can export sales lift corn?

May 21, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains are trading higher, with corn up 1 1/2 cents, soybeans up 1 1/4 cents and wheat up 3 cents. The U.S. dollar is lower by 1/10th of a percent and crude oil is 48 cents higher. This morning a reportable export sale was announced for 152,400 metric tons of...

[Read More]