Fresh USDA supply and demand data did little to change the overall direction of grain markets this week. Stocks continue to be ample and prices have found little reason to rebound from recent losses. However, cash basis continued to firm this week, with corn posting 2-cent gains for the week while soybeans were up 3 cents on the week.

In the corn market, basis levels were up strongest around the river system buoyed by a Gulf basis that was up 5 cents on the week. However, ethanol plants as a group continue to lag the rest of the market. Average corn basis was up only 1-cent for the week at ethanol plants across the country, and some areas are even flat like the northern Plains of South Dakota and North Dakota.

In contrast, soybean plants have been pushing basis higher. Soy plants increased basis by 4-cents on average compared to a 3-cent gain across the country this week. Eastern Corn Belt plants in particular saw gains of 5 to 10 cents.

Continue to expect solid gains in cash basis. Although ethanol plants have so far been content and have yet to push basis levels higher, that may like change in the next few weeks. In the past month, average basis levels have climbed about 10 cents a bushel across the country and we would expect the next 30-day period to be equally good for basis improvements.

Fresh USDA supply and demand data did little to change the overall direction of grain markets this week. Stocks continue to be ample and prices have found little reason to rebound from recent losses. However, cash basis continued to firm this week, with corn posting 2-cent gains for the week while soybeans were up 3 cents on the week.