Basis Gains More Ground
Dec 23, 2008
Basis levels continued to firm this week around much of the country, adding to solid gains posted since harvest. Dating back to the first of November, U.S. average corn basis is up 17 cents a bushel while soybean basis levels have firmed by 25 cents a bushel.
Over the past week, corn and bean basis levels average a 2-cent per bushel gain. For corn, basis levels were weaker in the Plains and Western Cornbelt, but managed 4-cents or better gains in Southern river terminal markets.
Soybeans had similar weakness in the Upper Midwest and Plains. But more Southern areas were bolstered by a strong showing from the Gulf. For the week, soybean basis at the Gulf posted a 6-cent a bushel gain.
Basis levels should continue to march higher in the coming weeks. Holiday’s take their toll on keeping grain pipelines flowing, plus with added weather storms across much of the grain belt movement farmer sales should continue to be sluggish.