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Firmer Gulf lifts interior grain basis

Agriculture.com Staff 01/07/2010 @ 8:16am

U.S. average cash grain basis levels gained 3 cents on average over the last week for both corn and soybeans. Much of the stimulus was related to strong post-holiday gains in Gulf export basis bids.

In the corn market, river markets saw the biggest boost as Gulf corn basis levels jumped 15 cents a bushel with the new year. Most river markets moved up in tandem as well. In the Plains and the majority of the Corn Belt, basis gains were more tempered over the last week. Many ethanol plants were steady to slightly lower post New Years after they had boosted basis just after Christmas.

For soybeans, similar gains in basis occurred along the river system this week. However, Gulf basis bids were fairly steady over the past week. The rest of the country was slightly higher on normal season strength and slow movement during the holiday period.

Seasonal gains in basis should be the norm in the near-term for both corn and soybean basis levels. In addition, cold and wintery weather for much of the country should keep cash movement slow in conjunction with relatively flat futures price movements.

U.S. average cash grain basis levels gained 3 cents on average over the last week for both corn and soybeans. Much of the stimulus was related to strong post-holiday gains in Gulf export basis bids.

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