The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
The FBN Team provides a macro-focused daily view of the world’s grain markets. Kevin McNew received a bachelor’s degree from Oklahoma State University and his master’s and Ph.D. degrees in Economics from North Carolina State University. He spent 10 years as a Professor of Economics with the University of Maryland and Montana State University focusing on commodity markets and is widely regarded for his ability to boil-down complex economic situations into easy-to-understand concepts for applied life.
Cash markets were modestly firmer on basis this week as both corn and soy spot basis levels inched higher by 2 cents.
The river market saw the biggest gains thanks to a quick reversal in barge freight that saw basis levels climb by 5 to 10 cents a bushel.
Processors were also stronger for corn as 2 to 3 cent gains were fairly common. Corn demand from southern stretches of the grain belt from TX to AR continue to see higher basis as gains at feed buyers were up a nickel or more at some key players in the region. For soy plants, there were a few plants that bolstered their basis to attract supplies but the average gain across the group of 50 soy plants was up less than 1 cent a bushel.
The risk of trading futures, hedging, and speculating can be substantial.
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