Grain basis took a sharp turn lower to start September.
On average, corn lost one and a half cents to close the week. Ethanol followed behind losing almost a quarter cent. Ethanol stocks gained another 109,000 barrels bringing the total to 20.93 million barrels. Production was off by about 5,000 barrels per day with production holding steady around 1 million barrels per day. Corn along the river was the biggest loser off six and a half cents per bushel.
Basis levels for soybeans were especially weak as September started. This is typical for this time of year as old- and new-crop deliveries begin to merge. On average, soybean basis was off eight cents per bushel. Crush facilities saw decreases of three cents. Soybean facilities along the river were the biggest movers this week off an average of sixteen cents per bushel.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
