Basis levels continued to rise this week with corn and soy basis advancing about 2.5 cents across the US on average.
Active farmer planting and weaker futures prices have helped to support basis in the past two weeks. For corn, basis in Western Kansas continues to be an area of notable strength. This week we also saw some activity good movement by Corn plants in Southern Indiana, although basis improvements were relatively short-lived for only a couple of days. There are also some reports of a few isolated push opportunities by buyers that look to get short-term needs covered.
For soybeans a few soy crushing plants in the Western Cornbelt increased their basis this week, and plants in Northern Indiana and Ohio were trying to bid up basis as well with gains of 3 to 5 cents fairly typical in these regions.
On the river, market basis for corn was notably weaker this week with a 2.5 cent loss on average across buyers. The Gulf was off 1 cent, but some river markets were off 3 to 5 on the week. For soybeans, basis levels at river terminals were up 1.5 cents on average, lagging the broader market gains of 2.5 cents.
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