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Basis levels remain stable

Agriculture.com Staff 04/09/2007 @ 11:12am

Corn futures stabilized by the end of last week on ideas the market was oversold and fears about a wet planting season. With wet weather forecasts, some talk is circulating that corn acres could fall 1 to 2 million below USDA's projection in March.

In the cash market, corn basis was up on average about 2 cents a bushel for the week. Most of the strength was along the river system, as high Gulf bids pushed bids at river terminals higher. For the week, the corn Gulf basis increased 9 cents a bushel.

For soybeans, basis levels were up only modestly with an average gain of 1 cent per bushel over the last week. Unlike corn, the bean basis at the Gulf gained only two cents for the week, which kept basis bids along the river mostly flat. Some improvements in soybean basis did occur in the Mid Atlantic region.

Corn futures stabilized by the end of last week on ideas the market was oversold and fears about a wet planting season. With wet weather forecasts, some talk is circulating that corn acres could fall 1 to 2 million below USDA's projection in March.

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