Weekly Cash Comments

随着旧作品/新作品营销季节的融合开始引起一些转移模式，全国各地的谷物基础都混合在一起。在一周中，美国的平均玉米基础在分数上更高，而大豆却损失了3美分的蒲式耳。

For corn, early harvest in parts of the Southern US is starting to weigh on basis. At the same time recent weeks of active farming selling of old-crop corn has helped mute basis strength. However, end-buyers of corn started to show a bit more strength for corn with ethanol plants as a group up 1 cent on the week. In the WCB basis at some plants showed more buoyancy with gains of 3 to 5 cents fairly typical. For river markets, they were generally weaker by 4 cents.

Corn basis was buoyed mostly by ethanol plants which saw a 3-cent gain on the week. Much of the Western Cornbelt saw solid basis improvements on the week as farmers there face lower yield potential and hold back on any old-crop deals. Meanwhile at river terminals basis was up about 2 cents, on par with the broader movement across the US. The Gulf was mostly steady on the week.

For soybeans, basis levels were sharply lower in IA/MN/MO and S IN as buyers start to move basis levels to their new-crop bid. Soybean crush facilities were off 5 cents on the week while river terminals held mostly stable as strong export demand of late keeps a bid under the market.

In terms of the competitive landscape, IA & MN saw some smaller players heat up the market place with 10 cent advances on basis as late season farmer selling there has slowed.

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

—Kevin McNew