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January 08, 2013 | Grain Hedge Insights | Jackie Roembke | Views: 187

Soybean Basis Jumps while Corn Stays Sluggish

Soybean basis saw double-digit gains in many parts of the country, while lackluster export demand kept corn basis improvements modest

Soybean basis saw double-digit gains in many parts of the country this week as strong export bids and falling barge freight helped push basis levels higher. For the week, U.S. average soybean basis was up 4 cents a bushel while corn

Spot soybeans rose sharply on the river system this week, bolstered by a decline in shipping costs to the lowest levels since before the autumn harvest. An adequate supply of empty vessels on U.S. Midwest rivers pressured barge freight, with shipping costs on the Illinois River falling to the cheapest since August.  Gulf premiums also rose by 10 cents a bushel . On average, river terminals were up 12 cents a bushel for the week while soybean crushing plants lagged behind with a 4-cent advance.

In corn, lack of strong export business continues to plague the market. This week’s paltry sales of only 49,000 MT underscores just how bad the corn export picture really is.  Total year-to-date export sales of corn are 48% below last year, while USDA has pegged exports to fall only 25%.  In the cash markets, corn basis was up modestly across the country thanks to a 6-cent gain at the Gulf. However, ethanol plants continue to show spotty needs. Some plants in ND and MN drove basis higher to start the New Year while plants in IA were mostly weaker. On average, ethanol plants were up 2.5 cents for the week.

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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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Dryness Concerns in Brazil

October 21, 2014 | Grain Hedge Insights | Cody Bills

In the overnight session corn was unchanged, soybeans traded 5 1/4 cents higher and wheat improved 2 1/2 cents. 

 

Brazil’s key growing state of Mato Grasso is seeing dryer than normal planting conditions as Brazilian producers ramp up planting. Over the last thirty days the majority of...

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