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Futures rally keeps basis gains in check

Agriculture.com Staff 02/24/2010 @ 2:46pm

Corn and soybean basis levels have climbed 20-cents in the last two months, but this week's gains were limited by a rally in the futures market. For the week, U.S. average corn and soybean basis levels were up 1 cent a bushel.

Corn markets were mostly unchanged in the Midwest, although some strength was apparent along the Lower Mississippi River and the Ohio River systems were barge rates inched lower this week. At the Gulf export market, corn basis was up a penny for the week.

Soybean basis was aw similar strength along the lower river system and got a boost from Gulf basis rising by 2 cents over the past week. However, soybean plants as a group were only up 1 cent for the week.

We've had a good run for basis in the past few months. However, going forward basis levels will more closely track what happens in the futures market. Barge rates have sunk to very low levels and are likely to come off their lows as we approach the spring, which could keep basis levels on the defensive.

Corn and soybean basis levels have climbed 20-cents in the last two months, but this week's gains were limited by a rally in the futures market. For the week, U.S. average corn and soybean basis levels were up 1 cent a bushel.

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