Grain basis moved higher this week and sliding grain futures continued to pressure farmer movement. On the week, corn basis was up 2 cents a bushel while spot soy basis managed a 3-cent advance.
Corn basis was buoyed mostly by ethanol plants which saw a 3-cent gain on the week. Much of the Western Cornbelt saw solid basis improvements on the week as farmers there face lower yield potential and hold back on any old-crop deals. Meanwhile at river terminals, basis was up about 2 cents, on par with the broader movement across the US. The Gulf was mostly steady on the week.
For soybeans, basis levels were much stronger at river terminals with a 5-cent advance on the week; driven partially by a 2-cent improvement at the Gulf. Soy crush plants were up 3 cents a bushel, although late-season maintenance routines for select plants will likely slow some of the appetite for soybeans in the near-term.
In terms of the competitive landscape, we saw Eastern IL/Western IN premium buyers bid up the market in their region. Bunge and Cargill added a nickel to their basis to help expand their drawing region over the last week. Further to the south, Poet gained some ground in their drawing region with a modest 1-cent basis improvement.
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