Soaring futures prices sometimes mean weaker basis, but that wasn't the case with this week's rally to new highs in the soybean market. Extremely tight old crop supplies had the cash market actually leading futures, as end users scrambled to cover needs for the summer.
Basis moved higher at most locations, according to Farm Futures regional averages. But the best gains came in the eastern Midwest, where poor yields last fall mean there are few beans left in the country for processors. Soybean planting delays in those same states are adding to the squeeze, because fewer early harvested beans will be available to refill the pipeline.
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