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Kevin McNew: Corn basis rally stalls

Agriculture.com Staff 01/04/2006 @ 9:28am

Corn cash prices are up this month with help from the futures market. Nearby corn futures are up over 15 cents since last month. Basis, on the other hand, has been less than helpful this holiday season. Recent high futures prices have generated increased cash sales and have brought last month's basis rally to a standstill.

The average basis in both Iowa and Illinois improved only 2 cents this month. Both states are roughly 4 cents below their respective basis levels of last year. Nebraska and Kansas saw basis move up 3 and 4 cents respectively this month, averaging -35 and -29 cents. While basis improved in both Wisconsin and Minnesota, these states are still considerably below their average basis for this time of the year.

Average Corn Basis

State

Current

Last Month

Last Year

AL

-25

-25

-7

AR

-3

3

-2

IA

-37

-39

-33

IL

-20

-22

-15

IN

-21

-23

-16

KS

-29

-33

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