Grain basis on average across the US was little changed this week as strength in futures prices helped lift farmer selling. On the week, corn basis was up 1 cent a bushel while soybeans was unchanged.
In soybeans, the big run-up in futures prices over the past week helped stimulate selling by farmers which in turn put basis levels more on the defensive. Soy crush plants as a group were off 1 cent a bushel on the week with more notable weakness in the Western Cornbelt as key buyers there lost 5 or more cents a bushel. At river terminals, basis levels were unchanged even with the Gulf moving modestly higher by 2 cents a bushel.
In corn, basis levels managed to inch higher largely driven by better basis bids at ethanol plants, which were up 2 cents this week. However, bad news from ethanol manufacturer Abengoa Energy that it is facing bankruptcy put the brakes on the Colwich, KS plant which is now idling and the Ravenna, NE which is no longer buying corn. At river terminals, basis levels were up 1 cent a bushel, following a similar gain at the Gulf.
With futures markets showing signs of recovering, look for basis levels to be flat to lower as farmers increase sales going into the end of the year.
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