Corn Basis Screams or Slumps Based on ZIP Code

October 26, 2015 12:00 PM
grain elevator 2

Widely divergent corn basis figures this fall reveal the eastern and western Corn Belts are two very different places, says Chip Nellinger, Blue Reef Agri-Marketing.

“In the eastern Corn Belt, it feels a lot like 2012,” Nellinger tells “AgDay” host Clinton Griffiths on the Agribusiness Update segment for Monday, Oct. 26, 2015. “Basis is just screaming, 30 [cents] to 40 [cents] over really through the tail end of harvest. That’s almost unprecedented. Yet in the same breath you’ve got producers out in the far northwestern Corn Belt, they’re looking at 40 [cents] to 50 [cents] under basis or worse. [There are] piles on the ground out there.”

At the same time, this isn’t a duplication of 2012.

“Maybe this basis strength isn’t quite as bullish as we saw in 2012 because that was a crop failure and a crop shortage,” Nellinger points out. “This is still going to be the second- or the third-biggest crop we’ve ever raised, so there’s no supply shortage. It’s just the supply is where they don’t need it necessarily, and the lowest supply—in the eastern Corn Belt—is where the best processor demand is. A very interesting fall and winter is shaping up ahead of us.”

Click the play button below to watch the complete video interview with Nellinger on “AgDay.”

Back to news



Spell Check

Alexandria, MN
11/24/2015 05:54 PM

  If anything, it reminds me of fall of 2010.... Lots of corn and basis tighten through out the winter.... Around central Mn here, it was at around 60 cents minus, it improved to 43-45, now settled back to 49.... I hope it gets down to 25-30... At least.... :) I have some good spring contracts.....


Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer