August 19, 2013 | Grain Hedge Insights | | Views: 112

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

Crop Conditions Slip

July 29, 2014 | Grain Hedge Insights | Cody Bills

 Alert: First Notice for August Soybeans is on Thursday, July 31st. Grains are trading lower in Chicago, with corn down 3 cents, soybeans off 10 and wheat unchanged to lower. This morning there were reportable sales of 135,000 metric tons of new crop Soymeal to unknown destinations and...

[Read More]
Soybeans Pop

Soybeans Pop

July 28, 2014 | Grain Hedge Insights | Cody Bills

Tune in as Cody describes the 24-cent higher move soybeans made and how new crop soybean sales are helping it out. Export inspections, weather outlook and crop conditions also were covered in this report.

[Read More]

Soybeans Higher in the Overnight

July 28, 2014 | Grain Hedge Insights | Cody Bills

The grains are mixed this morning with corn trading 3 cents higher, wheat 3 ¾ cents lower and August soybeans 12 cents higher this morning. The August soybean contract is trading at $12.24 ½ and has first notice on Thursday, July 31. Currently, the spread between August and September...

[Read More]