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Kevin McNew: Grain basis continues to firm

Agriculture.com Staff 12/23/2009 @ 10:10am

Cash grain basis levels continued to inch higher this past week, with corn and beans posting a 2-cent and 1-cent gain over last week’s levels. Month-to-date gains have totaled 3 cents for corn and 4 cents for soybeans.

In the corn market, basis levels were up more prominently in stretches of the Western Cornbelt were select ethanol plants were bidding 5 to 10 cents stronger on basis and at some river markets along the Ohio River. However, at the Gulf, basis levels were sharply lower, giving up 7 cents for the week.

For soybeans, basis levels were mostly steady although similar weaknesses was apparent out of the Gulf as bean basis dipped 7 cents for the week. Soy crushing plants bucked the overall trend this week, slipping a penny a bushel on basis

With the holidays approaching this week, and wintery weather expected to blanket much of the Plains and Upper Midwest in the next few days, basis levels should so more strength as cash movement slows. Farmers are likely to hold tight to their inventories as futures prices remain on the defensive.

Cash grain basis levels continued to inch higher this past week, with corn and beans posting a 2-cent and 1-cent gain over last week’s levels. Month-to-date gains have totaled 3 cents for corn and 4 cents for soybeans.

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