Home / Markets / Markets Analysis / Corn basis slumps as ethanol plants flinch on higher prices

Corn basis slumps as ethanol plants flinch on higher prices

Agriculture.com Staff 05/14/2009 @ 2:55pm

Grain basis levels were mixed this week as soybeans posted a 0.8 cent per bushel increase across the U.S while corn basis was off by nearly 3 cents a bushel.

Corn was especially hard hit this week in the Western Cornbelt as ethanol plants seemed to shun corn as prices moved higher. In IA, WI, MN, & NE, ethanol plants were off 3 to 6 cents a bushel. Eastern Corn Belt plants were mostly unchanged as planting lags in this part of the country, keeping farmer sales slow.

In soybeans, basis levels were mostly steady throughout much of the country. Modest gains of 2 to 3 cents a bushel were noted in the Eastern Corn Belt, again reflecting farmer activity in the field and limited bean movement. The Upper Mississippi region was weaker as barge rates moved up slightly in this region.

Grain basis levels were mixed this week as soybeans posted a 0.8 cent per bushel increase across the U.S while corn basis was off by nearly 3 cents a bushel.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Soybeans Rally on Demand, Weather