After taking an initial hit from USDA's crop acreage report, soybean futures have rebounded but still remain about 50 cents shy of the pre-report level. However, basis has helped close the gap as soybean cash prices have firmed.

At the Gulf of Louisiana, soybean basis level firmed 15 cents on the week while corn basis was mostly unchanged over the last week at the export market. Similar trends were felt across the country.

Corn basis was mostly unchanged at country elevators and terminal markets. However, there was some moderate weakness across the Western Cornbelt as basis levels slumped 2 cents across much of Iowa and Minnesota.

For soybeans, basis levels were up fairly sharply around river terminal markets. Gains of 10 cents or more were fairly common at key river markets and areas around the rivers saw basis improve about 7 cents.

Continue to expect volatility in the basis as futures markets search for equilibrium. Basis levels should find additional strength as farmers head to the fields.

After taking an initial hit from USDA's crop acreage report, soybean futures have rebounded but still remain about 50 cents shy of the pre-report level. However, basis has helped close the gap as soybean cash prices have firmed.