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Basis levels unchanged in wake of futures rally

Agriculture.com Staff 04/03/2009 @ 7:19am

Grain futures got a boost from USDA's first-glimpse of 2009 crop prospects. With farmers signaling that they intend to plant fewer soybean acres than most analysts projected, soybean futures shot higher while corn followed with more modest gains.

However, cash basis levels held mostly steady for the week. On average, corn and soybean spot basis levels around the country increased by less than one-cent per bushel.

For the week, corn basis was slightly stronger in the western Corn Belt. Areas along the river system were mostly unchanged, to down slightly as Gulf basis levels weakened one cent for the week. Eastern Corn Belt regions saw more weakness with some areas seeing losses of 3 to 5 cents on the week.

In the soybean market, basis levels took a hit around river terminal markets as Gulf bean basis slipped 8 cents on the week. Areas of the western Corn Belt staged modest gains of a few cents while Eastern markets were mostly unchanged to lower.

Continue to expect basis levels to be flat or weaker for most in coming weeks.

Grain futures got a boost from USDA's first-glimpse of 2009 crop prospects. With farmers signaling that they intend to plant fewer soybean acres than most analysts projected, soybean futures shot higher while corn followed with more modest gains.

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