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Rally Weakens Corn Basis

Slow planting makes farmers reluctant to sell.
Bryce Knorr 
Published: May 14, 2009

The move to new highs in old crop corn futures gave farmers holding corn another chance to move inventory, and producers took advantage of the opportunity. With many out of the fields due to rain, corn basis weakened at most locations around 3 to 5 cents a bushel.

Higher barge rates caused by swollen river levels also worked against basis this week, though basis was strongest in the eastern Corn Belt, where slow planting made farmers reluctant sellers.

To read Bryce Knorr's complete weekly basis review, click HERE.



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