Weekly Cash Comments
Weekly Cash Commentary for week ending 11/10/2017
Soybeans continued to move higher on basis this week as harvest wraps up and fresh supplies are becoming limited. For the week, US average soybean basis climbed 3-cents while corn basis inched up 1-cent as harvest deliveries were still strong in the Western Cornbelt.
Beans found strength this week driven in part by the Gulf export market which shot up 7 cents a bushel which helped an even bigger move at upstream river terminals which garnered an 11-cent advance. There was however some disruptions in barge traffic on the lower Ohio near Paducah, KY as heavy rains and a rock dike stymied movement. Elevators there took a defensive stance on basis giving up 6 cents on the week. Crush plants followed suit with the broader market moving up 7 cents on average but gains of 10 to 15 cents were fairly widespread at some key facilities.
For corn, the market was more subdued as harvest continues to be in full force in the Upper Midwest. Nonetheless, river terminals as a group still managed a 3-cent advance on average. However, ethanol plants were more subdued bidding up basis only 1.5 cents on average.
Basis levels should continue to climb as harvest wraps up in the coming days for beans and likely wraps up enough in corn to slow pipeline supplies. With futures heading south farmer selling should be more limited once we get done with the harvest season.
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