It was another week lower in the grain futures markets as the prospects of another bumper crop this fall keep prices on the defensive. In the cash market, basis levels only showed modest improvement for soybeans, which gained 1-cent a bushel while corn basis was unchanged for the week.
For corn, basis levels were mostly flat with ethanol plants showing no real movement as a group. However, in Iowa there was some noticeable weakness in spot basis with numerous plants in the region posting 2 to 5 cent losses on the week. For river terminals, basis was higher by nearly 3 cents a bushel this week. In Saint Louis, spot basis moved up to +23N this week cents and is up 18 cents in the last two months.
For soybeans, there was a bit more strength overall this week as compared to corn thanks to sharp gains at crushing facilities. Soybean plants as a group were up 3 cents a bushel, but gains of 5 cents a bushel were fairly typical especially at Western Cornbelt facilities. At the Gulf, export basis was up 2 cents a bushel on the week, but river terminals as a group were only up 1 cent. With ample pipeline supplies and slowing export demand it will be difficult for basis levels to post any significant gains at this time of year.
