Weekly Cash Commentary - November 03

Published on: 21:53PM Nov 03, 2017

Basis levels continued to inch higher this week as soy harvest starts to wind down and rains helped slow some of the corn cutting. For the week soy basis climbed 3 cents while corn inched higher with a 1-cent advance.

The central driver this week was lower barge freight. River terminals were buying beans at 10 to 15 cent premiums over last week while corn terminals bid up basis by about 5 to 10 cents on the week. Since October’s meteoric rise in barge freight, rates have returned to more normal levels helping to give river basis some stability and strength.  The southern part of the River seems to be fully past the harvest pressure and exhibiting more upside strength than northern parts of the rivers.

Processing facilities for soybeans also were in a buying mood as basis levels are starting to improve after bottoming out last week. As a group soy crushers were up 5 cents but gains of 5 to 15 cents on the week were noted as some facilities. For corn facilities, there were less eager to move higher. In SD/IA some plants are seeing storage space limits hit and are starting to shut down corn truck deliveries to manage the constraint. But in the Southern Corn-belt some facilities are starting to bring basis up. As a group, ethanol plants gained 1-cent on the week.

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