Weekly Cash Comments

Grain basis moved lower this week as a two-week recovery in the futures market seemed to run into headwinds. Farmer selling, especially in the Western Cornbelt has put basis on the defensive.

Corn basis was off 0.6 cents a bushel on average this week across the US thanks to increased farmer sales. Ethanol plants saw the biggest losses with a 1.6 cent a bushel drop with losses of 3 to 5 cents a bushel fairly common across IA, NE & MN. Meanwhile, river terminals had some stability this week as basis at the Gulf bids posted a 2 cent advance.

For soybeans, average basis levels were off 1-cent a bushel and unlike corn, is starting to see some weakness in the export market. Gulf bids were off 1 cent a bushel and upstream river terminals backed off on basis by 1.5 cents this week. Soy plants, which had been weaker the previous week, were mostly unchanged this week.

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

—Kevin McNew