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Weekly Cash Commentary

Commentary for Week Ending January 05

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Grain basis got a lift early in the week as cold weather helped stymie grain flows. On the week, corn basis was up 2 cents a bushel while soybeans basis climbed 5 cents.

The first trade day of the New Year saw several key facilities in Iowa give producers a dime for quick ship deliveries. But that bump fizzled as dump lines quickly expanded and by mid-week the opportunity had moved back to normal. In beans, a few plants bid it up a bit as the roll happened from Jan to March but those plants also found little reason to keep basis elevated.

On the river markets, it was mostly a strong week especially along the OH River and lower MS River system which saw nearly double-digit gains for corn and bean basis. But by the end of the week, the Saint Louis, MO area was seeing ice and low water conditions which took a hit to spot basis delivery bids.

Soy crush facilities were especially strong on the Eastern Cornbelt and down into the Southeast poultry/hog markets. Gains of 10 to 15 cents a bushel were fairly common in these areas.

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