Corn and soybean basis levels posted modest gains for the week with the Eastern U.S. having generally stronger gains then the Western part of the grain belt. For the week, corn basis was up 2 cents a bushel while soybeans advanced 1-cent.

In the corn market, gains were more prominent in the Ohio Valley region and the Mississippi Delta. Movement of physical grain, normally lower at this time of year, is seeing a mixed bag depending on whether it is rail or barge traffic. For rail, grain shipments have been up in recent weeks and are running 20% ahead this same time last year, while barge movement is off 5% from this time last year. Weak export business is keeping a lid on Gulf grain basis and giving little incentive for upstream markets to bid aggressively for cash grain.

For soybeans, basis levels were slightly weaker than corn and the areas around the river system had limited to no gains in the past week. Gulf bean basis was slightly weaker over recent days, but seems to have found some stability.

Ample stocks and limited demand should keep basis levels in check over the next few months. Continuing to store cash grain will be a difficult proposition as basis gains should be limited. Furthermore, carry in the cash market continues to evaporate over time. For both corn and beans, the spread between May and July forward contract prices has shrunk by 1-cent a bushel over the last month so finding forward prices to lock in profitable storage is becoming difficult.

Corn and soybean basis levels posted modest gains for the week with the Eastern U.S. having generally stronger gains then the Western part of the grain belt. For the week, corn basis was up 2 cents a bushel while soybeans advanced 1-cent.