The big rally in soybeans and flat corn prices resulted in basis moves that were highly predictable in the latest week: Soybean basis eased across the Midwest, while corn continued to see seasonal strengthening as the May delivery period approaches.
Cash soybean prices above $10 opened the doors to some bins, keeping the pipeline well supplied, though some farmers were reportedly holding out for even bigger gains. Some elevators that weakened basis for immediate delivery had bids that were 15 to 20 cents higher for May, when farmers will be busy with fieldwork.
While country basis weakened, bean basis at the Gulf improved, reflecting strong export demand, especially from China. That could lead to a volatile situation this summer, when supplies really get tight.
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