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Cash grain basis firmer

Agriculture.com Staff 02/04/2010 @ 9:38am

While grain futures continued to slide lower this week, basis levels around the country posted solid gains. For the week, both corn and soybean basis levels were up 3 cents on average across the country.

Corn basis levels posted solid gains throughout much of the country. Barge rates slipped a few cents over the last week along the Illinois and Ohio River, which helped lift basis levels. But, ethanol plants also helped contribute to strong basis gains. Gains of 5 cents or more were fairly typical for ethanol plants. Although areas in the Northern Plains and Upper Midwest are somewhat lagging and still seeing weak basis levels thanks to a very late harvest.

For soybeans, basis levels saw similar gains as the corn market. The US average gain was 3 cents a bushel, with soybean plants bidding up basis.

The carry in the cash market continues to favor corn storage at most markets across the country. Average cash forward contract carry in the corn market is 21 cents per bushel for 4 months of storage. In soybeans, the carry is much less favorable giving farmers little incentive to store soybeans.

While grain futures continued to slide lower this week, basis levels around the country posted solid gains. For the week, both corn and soybean basis levels were up 3 cents on average across the country.

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