Grain basis was mixed throughout the country as the convergence of old-crop/new-crop marketing seasons begins to cause some shifting patterns in basis. On the week, US average corn basis was fractionally higher while soybeans lost 3 cents a bushel.
For corn, early harvest in parts of the Southern US is starting to weigh on basis. At the same time recent weeks of active farming selling of old-crop corn has helped mute basis strength. However, end-buyers of corn started to show a bit more strength for corn with ethanol plants as a group up 1 cent on the week. In the WCB basis at some plants showed more buoyancy with gains of 3 to 5 cents fairly typical. For river markets, they were generally weaker by 4 cents.
Corn basis was buoyed mostly by ethanol plants which saw a 3-cent gain on the week. Much of the Western Cornbelt saw solid basis improvements on the week as farmers there face lower yield potential and hold back on any old-crop deals. Meanwhile at river terminals basis was up about 2 cents, on par with the broader movement across the US. The Gulf was mostly steady on the week.
For soybeans, basis levels were sharply lower in IA/MN/MO and S IN as buyers start to move basis levels to their new-crop bid. Soybean crush facilities were off 5 cents on the week while river terminals held mostly stable as strong export demand of late keeps a bid under the market.
In terms of the competitive landscape, IA & MN saw some smaller players heat up the market place with 10 cent advances on basis as late season farmer selling there has slowed.
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