Corn basis moved seasonally higher this week, as farmers remain reluctant sellers with futures prices below $4. While cash flow selling could begin soon, for now bids are above last year's weak levels, and in some cases are near or approaching average levels for this time of year. After suffering poor basis in the last year, that alone is something of a victory for the cash market.
Falling barge freight rates along stretches of the Mississippi River that are open year-round helped improve terminals ability to make offers. Freight along the Illinois River, however, remains at elevated levels due to ongoing icing concerns.
This week's ice storm in the Ohio River Valley has also disrupted transportation patterns, providing some marketing opportunities. Basis is near March option price at some eastern Corn Belt terminals.
To read Bryce Knorr's complete weekly basis review, click HERE.
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