Grain basis levels eroded this week as gains in futures markets helped fuel some cash movement by farmers. Stocks of corn and soybeans at key cash terminals were up sharply for the week according to USDA indicating farmer marketings were up. Both corn and soybean basis levels were lower by one cent on the week.

For corn, losses in basis were most severe around the river system with Gulf basis levels giving up 4 cents for the week. In the western Corn Belt basis levels were mostly unchanged. However, it remains clear that ethanol plants continue to hold back on corn purchases. For the week, basis levels at ethanol plants as off 2 cents a bushel.

In the cash soybean market, U.S. average basis levels were also influenced b Gulf weakness. The Gulf soybean basis gave up 5 cents for the week, fueling losses in upstream river markets. For the Plains and western Corn Belt, soybean basis held somewhat firm.

Basis levels should continue to be on the retreat after climbing higher much of the post-harvest season. Barge rates are unlikely to move any lower and with end-users getting their needs adequately supplied, basis levels should be on the defensive until we get to planting season.

Grain basis levels eroded this week as gains in futures markets helped fuel some cash movement by farmers. Stocks of corn and soybeans at key cash terminals were up sharply for the week according to USDA indicating farmer marketings were up. Both corn and soybean basis levels were lower by one cent on the week.