Soybean basis was on the defensive this week as higher futures and a sharp sell-off in corn pushed farmer sales towards cash beans. For the week, US average soybean basis was off 2.3 cents while corn basis was flat.
In soybeans, the biggest losses occurred at river terminals with the average decline at 5 cents on the week. Part of the weakness was tied to a 4-cent loss at the Gulf, but higher barge rates and active farmer selling put some losses as much as 8 to 12 cents a bushel on the week for key river terminals. At soy plants, basis was also weaker by 1.9 cents on the week, but the weakness at soy facilities has been muted as crush margins re higher as of late.
For corn, basis levels were mostly flat this week although river terminal strengthened slightly on a 1-cent gain out of the Gulf. Ethanol plants were unchanged as a group although there was some noted bidding up by 2 to 4 cents in the Western Cornbelt.
The risk of trading futures, hedging and speculating can be substantial. Grain Hedge is a branch of Foremost Trading LLC and its DBAs (NFA ID: 0307930)
