Both corn and soybean basis levels were up 2-cents a bushel on average over the last week. Basis levels continue to show no definitive trend higher. River markets have stabilized after sinking lower earlier in the months. Most processors have bumped their basis levels marginally over the last month, but overall nobody is leading the charge to pull grain from farmers grasp.
In corn, sections of the Upper Midwest and southern portions of Illinois and Missouri were up 4-cnts or more for the week. Barge rates at St Louis slipped about 3 cents a bushel for the week, and the Gulf corn basis gained 2-cents helping lift interior river terminals. Weaker basis levels were common in the Southeast.
For soybeans, similar patterns emerged with strength in portions of the lower Mississippi River area and weakness in the Southeast. Lower sections of Indiana and Ohio along the Ohio River were also weaker as barge rates on the river moved up a few pennies over the last week.
With weak futures markets and stagnate basis, pipeline supplies should start to shrink. Look for basis gains to begin to pickup in the coming weeks.
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