Sep 30, 2014
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Cash Grain Insights

RSS By: Kevin McNew,

Kevin McNew is President of Grain Hedge and Geograin. McNew was raised on a farm in central Oklahoma and received his bachelor’s degree from Oklahoma State University, and master’s and Ph.D. degrees in Economics from North Carolina State University. For over a decade, he was a Professor of Economics at the University of Maryland and Montana State University, focusing on commodity markets. He has received numerous academic awards for his research and outreach work, and was (and still is) widely regarded for boiling down complex economic issues into easy-to-understand concepts for applied life.


Slow Harvest Pace Keeps Basis Levels in Check

Oct 21, 2009

Another incremental week of grain harvest kept basis levels slightly weaker, but still holding relatively firm. Corn harvest went from 13% completed to 17% finished this past week, while soybeans went from 23% to 30% over the week. Basis levels were off 2 cents a bushel for both corn and beans, but much of the weakness was confined to areas along the River system.


Both corn and beans saw weaker basis at the Gulf for the week, with corn off 3 cents and beans off 4 cents. Further upstream at hinterland river terminals, grain basis was weaker still by 5 to 10 cents a bushel at most markets. A combination of harvest and slightly higher barge rates put pressure on these markets. However, the bulk of the harvest pressure still lies in wait. Other end-users continue to keep basis levels firm. On average, ethanol plants across the country were unchanged on corn basis for the weak, while the U.S. corn was 2 cents a bushel weaker.


Weather will continue to control the pace of harvest. The outlook still calls for intermittent rains throughout the bulk of the Midwest, especially in the Plains and Western Cornbelt for the coming days. By the weekend, the outlook appears more promising for harvest progress.


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COMMENTS (2 Comments)

I agree with last comment it seems like local elevator widens basis for protection when the markets become volatile in my area.
3:02 PM Oct 22nd
we still have a -60 on corn and - 52 on beans......the basis never changed with the weather.
6:20 PM Oct 21st
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