Sat, 25 Jan 2014
US - It was a week of mostly steady to weaker cash grain basis around the country.
In corn, this week's lack of upside follow through in the futures market combined with snow and cold temps through much of the Midwest kept farmer movement relatively subdued. At the Gulf, there was modest strength with spot basis premiums there increasing by 4 cents a bushel.
River markets along the Ohio and Illinois river saw the modest immediate benefit of that improvement with gains of 3 to 7 cents fairly common. On average across river terminals, basis levels added 1.3 cents a bushel over last week.
At corn ethanol plants, basis levels were mostly unchanged with only a handful of plants in the Western Cornbelt showing 5 cent improvements on the week.
For soybeans, it's been a painful week for farmers holding unpriced beans with futures and basis levels eroding to the point where most spot soy prices are below $13. At the Gulf, basis levels plunged 16 cents a bushel on the week as thoughts of China switching bean sales to South America kept the market on the defense.
Not surprising, river terminals were hard hit with losses compounded to the tune of 20 to 25 cents along the Illinois River.
At soy crushing facilities, there was moderate weakness at some plants but overall as a group they were mostly unchanged.