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November 28, 2012 | Grain Hedge Insights | Jackie Roembke | Views: 160

River Woes Push Basis Lower

Basis slipped lower along the river system as many terminals north of St. Louis face the possibility of barge restrictions to the gulf

Basis came under pressure along much of the Midwest river system this week as terminals north of St. Louis slowed grain buying amid looming draft restrictions on the river due to low water levels.   Basis levels for soybeans were off 4 cents on average along major river terminals this week, while corn river markets slipped half a cent for the week.

However, corn basis was higher in the upper Midwest and Northern Plains as ethanol plants pushed basis levels higher by 1.5 cents a bushel on average for the week. Further to the South, river terminals from Memphis running to the Gulf were higher thanks to a 5-cent increase in basis at the Gulf export market this week.

For soybeans, basis levels around the country average a 0.3 cent decline. Lower bids from river terminals in the Midwest helped ease competition for beans, and soybean crushing plants lowered their bids by 4.5 cents for the week.  At the Gulf, export basis climbed 5 cents a bushel.

Continue to expect ongoing threats of closures along the river to hamper basis strength.  While Gulf bids continue to be strong to encourage grain movement, there is a clear risk that the River may close or at least limit barge capacity around St Louis, MO in early December which will keep grain buyers in these areas defensive.

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Big Export Sales Hit Soybean Market

October 23, 2014 | Grain Hedge Insights | Cody Bills

Corn and wheat futures are unchanged while soybeans are trading 3 cents higher coming out of the overnight session.

 

This morning’s export sales report showed continued strong demand for U.S. soybeans. The USDA reported 2,166,800 tonnes sold for the current marketing year, with China...

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Grains Continue Higher in the Overnight

October 22, 2014 | Grain Hedge Insights | Cody Bills

EXPORTERS SELL 419,000 TONNES U.S. SOYBEANS TO CHINA AND 113,000 T SOYBEANS TO UNKNOWN, ALL FOR 2014/15.

 

Soybeans surged another 12 cents higher in the overnight on very light news. A close above 972 ½ on the November 14 contract would be a strong technical signal that October’s price...

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