While nearby soybean futures continued their climb this past week, cash traders had differing views about their need for $12 beans. Cash soybean basis was off 19 cents a bushel across much of the country this week, with some areas seeing losses of 29 cents or more.
Beans took the biggest hit in the Western Cornbelt as well as parts of Northern Indiana and Ohio. At the Gulf, basis levels were modestly weaker posting a 2-cent loss for the week.
For corn, basis levels firmed slightly for the week, with the average across all corn buyers rising by 0.8-cents per bushel. However, western NE & SD were weaker while much of IA, IL & IN saw modest gains. The Gulf posted a 3-cent improvement for the week, and should keep river terminal markets bidding for corn in the coming week.
With beans continuing to reach new heights, farmers seem to be keeping pipeline supplies in check and we see little reason for basis levels to improve much in the next few weeks. Corn should start to see more improvement as flat to weaker futures will likely keep farmers holding tight to old-crop stocks.
This commentary is for informational purposes only. The opinions and comments expressed herein represent the opinions of the author--they do not necessarily reflect the opinion of Farms.com. This commentary is not intended to provide individual advice to anyone. Farms.com will not be liable for any errors or omissions in the information, or for any damages or losses in any way related to this commentary.