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Weekly Cash Comments

Weekly Cash Commentary for week ending 05/06/2016

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Basis levels were generally firmer this week, although variability in basis movement has picked up on a fast-moving futures market. For the week, US average corn basis was up 1.5 cents while soybean basis bounced up 2 cents.

Bean basis showed the most volatility this week as there was a distinct difference on basis movement by end user. Soy plants as a group moved basis higher by 4 cents a bushel as crush margins improved although soymeal cash offerings are still running weak. At river terminals, however, basis levels were off 4 cents a bushel with losses of 5 to 10 cents fairly typical in some regions. Gulf basis has been weakening suggesting a potential slowdown in export movement.

For corn, basis levels were generally firmer this week. Ethanol plants as a group were up 2.3 cents a bushel as farmer selling is non-existent on recent price weakness and busy planting activities. At river terminals, basis was up 1.5 cents although the Gulf was slightly weaker on the week.

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