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 Grain Hedge 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.
Grain basis took a break from last week’s sell-off to mostly stabilize as slow harvesting keeps pipeline supplies relatively limited, especially for corn. On the week, there was no change in corn and soybean basis on average across the US.
Basis for corn continues to hold up with current basis levels running on par with the same time last year, but soybeans are about 10 cents a bushel weaker than this time last year.
This week saw some strength from corn buyers as end-users in the Western Cornbelt continue to see tight pipeline supplies. Double-digit gains in basis were showing up by feedlots and ethanol plants in NE and SD. River terminals saw some modest weakness along the lower MS River and the OH River region as harvest there picked up pace.
For soybeans, buyers were mostly steady to slightly weaker as harvest hits the mid-point for the year. Some soy crush facilities showed 10 to 15 cent losses this week across IA/IL/IN.
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