Beset by surprising USDA reports, signs of good demand and the start to July deliveries, basis remains in flux as the market nervously waits for trading to resume following the Independence Day holiday.
Soybean basis remains highly charged due to very tight old crop supplies, with most buyers already moving bids to September or even November futures. Measured against August futures basis mostly weakened in the latest week when compared to the big roll from July, which remains at a significant premium to the rest of the contracts. Deliveries against July beans and meal remain at zero, with some terminals not even trying to bid for old crop supplies. A big purchase by China earlier in the week did nothing to throw water on the red-hot market, though July/November finally broke after failing to breech $2.50.
Powered by iNet Solutions Group ©2011 All Rights Reserved.