Grain basis levels continued to hold relatively stable this week with soybeans unchanged while corn basis was off 1 cent a bushel.
Basis levels have been exceptionally stagnate for some time. Indeed, going back to Nov 1, spot corn basis versus March corn futures has only improved 11 cents a bushel, with the majority of that move occurring in November. Likewise, soybeans has seen only an 8-cent advance in basis since Nov 1 off the March futures.
This week saw some weakness at the Gulf with both spot corn and soybean basis off 3 cents a bushel. But, river terminals saw an increase in basis for soybeans by 0.5 cents a bushel, while corn basis at river terminals was off 2.5 cents a bushel.
For end users, ethanol plants were weaker by 0.7 cents a bushel, but soybean plants posted a 1-cent advance on average for the week.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a dba of Foremost Trading LLC (NFA ID: 0307930)