The cash markets remained relatively stable this week posing slight gains of an average of 1 cent per bushel.
This week Spanish energy firm Abengoa sold 5 of its Ethanol plants to Green Plains Inc. of Omaha, NE. There have not been many indications how this will affect ethanol basis in the short term. Ethanol plants regained last week’s losses gaining 1.5 cents. Corn basis along the river saw marginal gains of 1 cent per bushel. Nationally however, corn basis was down almost half a cent per bushel. This is the third week in a row corn basis has went down.
Soybeans have been a different story. Soybean demand remains high and analysts expect strong demand to continue despite the lower prices and strong yield potential. Basis at river terminals is most indicative of the strong demand and saw gains of 7.5 cents per bushel. Crush facilities saw basis gains as well, gaining almost 1 cent. Nationally soybeans gained 1.5 cents per bushel.
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