The holiday-shortened week did little to move cash basis levels across the country even as futures prices drifted lower. Corn basis on average across the US was unchanged for the week while soybean basis slipped a penny.
In corn, basis levels found some modest gains in IA, MO & IL, but southern reaches of the Mississippi river terminals were slightly weaker. Overall, barge rates continue to inch lower and are now trading below historical norms for this time of year which is helping keep basis levels firm. For ethanol, basis changes were minimal this week at plant locations. But, a big drop in ethanol production for the week could spell the start of easing demand for corn from ethanol plants. Margins for ethanol manufacturing are quickly eroding in the face of ethanol prices plummeting, and are a $1 a bushel lower than the same time last year.
For soybeans, Gulf basis was off 9 cents a bushel as slowing export movement cuts into bids. River markets saw some modest movement lower as a result. On the Eastern Seaboard, basis levels jumped about 10 cents a bushel with plants in NC & MD gaining ground on slower farm sales.
