U.S. Soybean Basis Popping
Basis is moving toward the three-year average
A strengthening basis as the future price is increasing indicates strong consumption, reports U.S. Soy.
For a cash price that has been diminished by reduced China exports, the basis moving toward the three-year average is a welcome development for U.S. soybean farmers.
Once the St. Louis Port water levels return to normal levels, Coast Guard barge movement constraints that are hindering soybean exports will be removed, which will improve basis.
Furthermore, with a very late planting season, the seasonal basis decline that occurs during harvest should not occur until mid-September.
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