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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.
Cash markets saw modest advances of 1-cent a bushel on the week for both corn and beans. River terminals were the big winner thanks to declining barge freight. On the week corn buyers along rivers were up 6 cents while soy markets were up 4 cents. However, barge rates fell much more sharply than the cash market improved with barge rates falling about 20 cents a bushel, but lower Gulf bids kept upstream river terminals less aggressive at bidding up basis.
As for end users, soy crush plants were up 1.6 cents on the week, but ethanol facilities were up 1.8 cents on the week. Soy crush facilities should continue to bid aggressively in coming months with spot crush margins trading at all time highs for this time of year. Basis levels should also be supported as weather begins to turn more favorable in early May which should limit farmer selling.
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