August 26, 2013 | Grain Hedge Insights | | Views: 197

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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GeoGrain Weekly Comments

November 21, 2014 | Grain Hedge Insights | Cody Bills

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...

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