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Bean basis stagnation continues

Grain futures prices have been directionless the past few weeks as traders anxiously await the first indicators of 2010 crop size in USDA's planting intentions report on March 31. The same lack of momentum has been true in the cash market were soybean basis level have remained unchanged for March, and corn has managed a minor gain of 3 cents a bushel.

In corn, basis levels did manage a better than 3-cent advance for the week along the Lower Mississippi River thanks in part to a modest turn around in Gulf basis. On the eastern Seaboard, poultry feeders seemed to be backing off basis levels keeping as mid-Atlantic markets were off 5 cents for the week.

For soybeans, basis levels were mostly unchanged for the week with some minor weakness noted along the river system. Gulf bean basis slumped 5 cents for the week and that took a toll on upstream river terminals.

Basis levels should continue their path of stability in upcoming weeks. Once farmers head back to the field, we should see a minor uptick in basis levels as pipeline supplies start to become more scarce.

Grain futures prices have been directionless the past few weeks as traders anxiously await the first indicators of 2010 crop size in USDA's planting intentions report on March 31. The same lack of momentum has been true in the cash market were soybean basis level have remained unchanged for March, and corn has managed a minor gain of 3 cents a bushel.

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