August 26, 2013 | Grain Hedge Insights | | Views: 143

Soybean Basis Drops After Sharp Rally in the Futures Market

Corn basis improved 3 ¼ cents on average supported by tight stocks and a less dramatic rally in the futures market

Soybean basis dropped sharply, falling 25 cents throughout the country. The explosive rally in the futures market helped increase farmer selling causing grain buyers to back off old crop basis. Corn basis improved 3 ¼ cents on average throughout the country supported by tight stocks and a less dramatic rally in the futures market.

Soybean basis weakened sharply at crush facilities which slipped 35 cents on average throughout the country. Despite a mostly unchanged Gulf basis, river terminals also posted basis declines, dropping on average 18 ½ cents.

Spot corn bids at ethanol facilities improved 4 ¾ cents this week despite a weakening crush margin. Recent rallies in old crop corn futures combined with lower ethanol and DDG prices have cut ethanol margins in Iowa to just $2.04 per bushel, down nearly 50 cents per bushel since the beginning of the month. Tight old crop stocks and lagging new crop maturity should continue to support old crop corn basis throughout September. 

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Soybeans Push Lower in the Overnight

Soybeans Push Lower in the Overnight

August 14, 2014 | Grain Hedge Insights | Cody Bills

Grains are unchanged in the overnight session, with corn down a quarter cent, soybeans up a penny, and wheat up half a penny. Export sales were slightly weaker than analyst expectations for wheat this morning with only 338,700 metric tons sold compared to the 450,000 to 650,000 MT expected....

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