Corn grain basis levels continued to show positive strength this week gaining 2 cents on average across the US for the week. Soybeans were up one-cent a bushel but continue to have limited strength after weeks of falling futures and basis levels.
In corn, bigger gains were seen along river terminals thanks to a 4-cent boost in export basis at the Gulf. On average, river terminals were up 3 cents a bushel, with the biggest gains occurring along the Ohio River region. For ethanol plants, they were up 1.5 cents for the week, with no significant trends in basis by region. Ethanol production increased week over week by 13,000 barrels per day to 944,000 barrels per day which is still well over last year's production pace. In the latest WASDE report released on Tuesday the 10th the USDA cut ethanol production by 50 million bushels. The USDA cited that the new Grain Crushing's and Co-Products Production report showed corn used for ethanol between October and January occurred at a higher conversion rate than previously assumed.
For soybeans, basis levels have been stagnant since mid-February and this week was not much different. Basis levels on average across the country were up only 1 cent a bushel. At the Gulf, export basis levels were up by a similar amount and with this week’s export sales coming in at a paltry 161,000 MT expectations are for slow business in the remainder of the marketing year. At crushing plants, gains were also muted when averaged across the country. However, there was more noticeable strength in MN & IA where there were some plants up 5 cents a bushel.
