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Strong soybean basis gains

Agriculture.com Staff 11/21/2008 @ 10:34am

Basis levels were mostly higher this week, with soybean basis showing the most gains. Strong demand out of the Gulf pushed soybean basis higher by 9 cents a bushel for the week, which helped lift average basis levels around the country by 5 cents a bushel.

For corn, U.S. average basis levels climbed 1.5 cents a bushel on average. Gains were pronounced in the eastern Corn Belt and spots of the Iowa and Nebraska. River markets, which have benefited from weaker barge rates, gave back some of their basis gains this week as Gulf corn basis plunged 20 cents a bushel.

For soybeans, basis gains averaged 5 cents a bushel around the country. Along the river basis gains were a bit more prominent as Gulf basis jumped 9 cents for the week. Even so, most of the country saw 2 to 7 cents in basis improvement over the last week.

With futures showing few signs of rallying, look for basis levels continue to climb to encourage supplies into the pipeline. Lower fuel costs also will help keep interior basis levels strong.

Basis levels were mostly higher this week, with soybean basis showing the most gains. Strong demand out of the Gulf pushed soybean basis higher by 9 cents a bushel for the week, which helped lift average basis levels around the country by 5 cents a bushel.

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