Cash grain basis showed modest strength this week after futures prices stabilized en-route to a two week slide. For the week, US average corn basis was up 1.1 cent a bushel while soybeans were higher by 1.0 cents per bushel.
Weekly Basis Changes-
Corn basis had a little more life at ethanol plants this week as processors bid basis higher by 1.9 cents on average. Ethanol production surged this week following a 5-week decline. Farmer selling has slowed considerably thanks to the slide in futures and with a warm spring approaching soon, it seems likely corn plants will have to pull basis up to attract sales in the coming months. For river terminals they were also higher on the week as solid export business continues to keep grain outflows on the move.
For soy plants, they continue to have no real interest in bidding up basis with only a modest 0.6 cent advance on the week. Meanwhile river terminals were up 3.7 cents on the week. River basis for soybeans continues to be below norm for this time of year and will eventually need to move higher as we approach delivery of May futures. Of the two, soybean basis seems to have the most upside in the coming 6 weeks as compared to corn.
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