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Grain basis posts modest gains

Agriculture.com Staff 12/16/2009 @ 5:56pm

Both corn and soybean basis levels posted modest gains over the past week. Corn averaged a 1-cent advance while US average soybean basis levels were up 2 cents for the week.

For corn, basis levels were mildly weaker in the Lower Mississippi river region and the Upper Plains. Modest gains were apparent around key river corridors along the Ohio and Illinois River as barge rates continued to slide lower. Since the first of December, barge rates are off 10 or more cents a bushel giving basis levels a boost.

In the soybean market, basis gains were more prominent than corn. Again, lower barge rates fueled gains along the river systems, and a 3-cent gain at the Gulf helped fuel advances as well.

With harvest in the books, basis levels should start to improve. Corn in particular may start to see more aggressive growth as relatively weaker futures prices and strong carry will likely keep farmers holding tight to their crop.

Both corn and soybean basis levels posted modest gains over the past week. Corn averaged a 1-cent advance while US average soybean basis levels were up 2 cents for the week.

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