Falling futures markets and slumping barge rates continue to help basis levels gain solid ground around most sections of the country. For the week, average U.S. corn basis was up 2 cents a bushel while soybean basis managed a 5-cent improvement.
In spite of sluggish end-user demand, basis gains have been fairly steady. Most of the drive has been tied to falling barge rates on slumping exports and a sluggish general economy. Since harvest, barge rates along major river systems have fallen 70-cents a bushel or more helping fuel gains in basis at key river terminals. For example, at Evansville, corn basis is up 90 cents a bushel since harvest while soybean basis is up over a $1 a bushel, both basis the May contract.
However, impacts at end-user sites are less impressive, especially for corn. Most corn markets tied to ethanol are up only 60 cents a bushel since harvest, although bean plants have managed gains of 90-cents or better since harvest.
Over the past week, corn basis gains of 1 to 4 cents were fairly typical across much of the Midwest. However, some weakness was apparent along the Ohio River region. Basis at the Gulf was off 2 cents for the week.
In soybeans, strong basis gains at the Gulf of 6-cents a bushel helped lift river market bids. Even areas outside of key river markets saw reasonably good gains of 3 to 7 cents over the past week as farmer selling continues to be sluggish.
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