US soybean basis showed good strength this week. While corn lagged behind, mostly steady to weaker loosing half a cent on the week.
Corn basis levels at the Gulf were off sharp this week, giving up 7 cents a bushel. River terminals managed to resist the drop in the Gulf at basis level were only off about one cent a bushel. Recent export deals in corn should underpin river bids and probably keep them moving higher in the summer. Meanwhile, ethanol plants as a group were down this week by one cent suggesting that ethanol plants aren’t eager for corn.
Overall, we saw a rise in soybean basis by two and half cents. River thermals were leading the rise higher with changes of nearly eight cents per bushel, moving in lockstep with the Gulf. Soy meal is on a sharp upward trajectory. We saw crush facilities increase basis by almost a nickel. Strengthening soy crushing margins all the way out to January are encouraging some to increase new crop bean basis.
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