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Wet weather slows harvest, gives lift to grain basis

Agriculture.com Staff 10/14/2009 @ 1:14pm

Corn and bean harvest made limited progress in the past week as rains continued to plague field work. Corn harvest moved up to 13% harvested versus last week's reading of 10% while beans were at 23% versus 15% last week.

The lack of significant harvest pressure kept basis levels mostly unchanged for corn over the past week, while soybeans gained 3 cents a bushel on average.

Corn basis was mostly unchanged through much of the country, although areas along the River system benefited from a contra-seasonal drop in barge rates. On the Ohio River, barge rates slipped by 5 cents a bushel. At the Gulf, basis levels were unchanged for the week.

For soybeans, basis levels were higher by 3 cents a bushel on average across the country and markets close to River terminals experienced even better basis gains, fueled by lower barge rates and strong Gulf basis levels. For the week, Gulf soybean basis levels were up 5 cents a bushel which helped give some interior markets double-digit gains in basis.

Weather will continue to control the pace of harvest, and in the near-term. The outlook for next week is not very promising for harvesting as there will likely be cool, wet weather in the cards for the majority of the Midwest. Basis levels should hold up and move higher in the coming week if current weather forecasts hold true.

Corn and bean harvest made limited progress in the past week as rains continued to plague field work. Corn harvest moved up to 13% harvested versus last week's reading of 10% while beans were at 23% versus 15% last week.

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