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Soybean cash basis higher on futures slump

Agriculture.com Staff 06/25/2009 @ 6:55am

Futures markets gave way to selling pressure over the past week as weather conditions improved and growing conditions pointed to a great start for the corn and bean crop. With falling futures, cash grain buyers seemed eager to keep their pipeline supplies in check, raising corn basis nearly 2 cents on average and pushing soybeans 5 cents higher for the week.

For corn, most parts of the country were stable to up a penny over the past week. Gulf export bids were weaker by 2 cents for the week, and some weakness along the lower Mississippi and Ohio River was tied to that. Some areas of the eastern Corn Belt, in Indiana and Ohio saw higher corn basis in these areas.

Gains were more prevalent in the cash soybean market. On average, U.S soybean basis was up 5 cents as end users attempt to pull what limited supplies exist in the hand of coops or farmers. Gains were especially noticeable in the western Corn Belt as basis levels jumped by 10 cents or more in some areas. At the Gulf, bean basis rose 4 cents on the week.

Futures markets gave way to selling pressure over the past week as weather conditions improved and growing conditions pointed to a great start for the corn and bean crop. With falling futures, cash grain buyers seemed eager to keep their pipeline supplies in check, raising corn basis nearly 2 cents on average and pushing soybeans 5 cents higher for the week.

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