Grain Insights

Weekly Cash Comments - March 09

Cash Comments - 

Grain basis was stagnant again this week as strength on the board keeps grain moving into supply channels, while flooding along river-ways has pushed barge rates sharply higher. On the week, US average corn basis was up 0.5 cents and soybeans were unchanged.

Export bids out of the PNW and Gulf were higher this week as export demand surges and rivers swell slowing barge traffic. On the week the PNW corn market improved 4 cents while the Gulf shot up a dime. Soybeans saw similar relative strength as the Gulf gains of 8 cents outpaced the PNW which added 6 cents. River terminals upstream from the Gulf had little ability to bid higher as higher barge freight ate away all the incentive. On the week corn river markets gave up 1 cent a bushel while soy river markets were off 5 cents.

For end users it was a week of not really needing to work too hard for corn supplies. On average corn basis at ethanol facilities was off 0.5 cents a bushel with much of the weakness occurring in Iowa. Plants in South Dakota had some modest gains. For soy crushing facilities they were also off by 0.5 cents on the week, but there were a few plants in the Southeast, and Eastern Corn Belt pushing basis a dime higher.

 

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