Grain basis levels were only modestly stronger this week across the country with US average corn and soybean basis up about a half a cent from last week.
In corn, strength in the Gulf export market helped push bids higher along river terminals. Average bids were up 2 cents a bushel this week at key river markets, although the Gulf was up nearly 6 cents a bushel. Barge rates were also higher this week with the biggest jump occurring along the IL River where barge costs increased 6 cents a bushel on the week. In ethanol, weekly production was lower this week falling 16,000 barrels per day and ethanol plants as a group were mostly unchanged on basis. Some Western Cornbelt plants in NE/IA/MN were up 3 to 5 cents, but most other plants saw little movement.
For soybeans, it was a week that saw mixed results across end user groups. River terminals were lower by 2 cents a bushel thanks to a 1 cent decline at the Gulf and rising barge freight. However, soybean crushing plants were up 2.5 cents on average. Eastern Seaboard plants and plants in Ohio saw some gains of 5 cents or better. As field work and planting starts to pick up pace we should start to see a bit more strength in spot grain basis as pipeline supplies begin to dwindle and farmer movement slows.
