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Weekly Cash Comments

Weekly Cash Commentary for week ending 02/10/2017

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Grain basis reversed course from recent trends with corn basis moving lower while soybean basis moved higher. For the week, soybean spot basis was up 1.4 cents a bushel while US average corn basis dipped 0.7 cents a bushel.

In corn, the big drag on basis was a move lower at river terminals which fell nearly 3 cents a bushel. Basis levels are now running about where they were in mid-December before peaking at the first of the year. With ethanol plants, they continue to run mostly full of corn with no major need to bid up basis to cover needs. This is especially true in the Western Cornbelt where corn stockpiles are still burdensome.

For soybeans, crush facilities eked out a 1-cent advance this week but continue to trade well below historical norms. Basis levels for soy plants are running about 35 cents below normal for this time of year. Meanwhile, river terminals are also weaker than normal are about 20 cents off basis expected at this time of year but will need to converge close to zero as first notice day approaches for March soy futures at the end of this month.

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