Grain basis inched higher this week for both corn and soybeans with 1-cent advances on average across US buyers.
The backdrop of weakness in futures and looming uncertainty around the end-of-week USDA report kept most people holding tight. Farmers still seem to hold a lot of cash corn and a high percentage of it unpriced. In corn, ethanol plants had bit of upside this week gaining 1.7 cents on average across 142 plants. The Western Cornbelt has seen some decent gains in spot basis over the past few weeks. ADM Columbus has boosted its basis by 15 cents a bushel in the past two weeks and a limited number of other buyers in the WCB seem to be showing a similar appetite to attract more grain.
For soy crush plants, average basis across 47 plants was up 1.6 cents a bushel, slightly better than the US average change. A few plants in the ECB did boost basis by a dime, but the vast majority were flat and continue to have weak basis as compared to historical norms for this time of year.
River terminals for both corn and soybeans posted average gains of 1 cent on the week. However, considering a decline in Gulf basis of 5 and 3 cents for corn and soybean basis, respectively, it was fairly remarkable that interior basis was able to hold up along river markets.
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