Grain markets were mostly quiet this week with corn and soybean futures showing little directional bias. In the cash market, basis continued to firm with US average corn basis up 2 cents while soybeans were up 3 cents a bushel.
In corn, ethanol plants continue to show less basis strength then other areas as the outlook for ethanol is clouded by falling energy prices. For the week, average basis levels improved less than 1 cent a bushel at ethanol plants. For river terminals, basis levels came under modest pressure as Gulf export basis lost 3 cents on the week. However, river terminals as a group still managed a modest half-cent a bushel gain. Weekly corn export sales of 1,000,000 MT were positive and with 17.2 MMT of corn outstanding to be shipped, the 2nd largest total for this time of year in the past 10 years, river terminals will likely need to keep their bids strong to draw gain out of reluctant farmer hands.
For soybeans, basis at the Gulf was unchanged this week but river terminals bid up basis to nearly 4 cents higher than the previous week. Export movement continues to be brisk although weekly new sales and cumulative outstanding sales are starting to slip. At crush facilities, facilities, basis levels were up 3 cents a bushel on average for the week.
