After languishing for much of the 2008-09 marketing year, corn basis has strengthened substantially, with a series of factors aligning to drive cash bids higher, especially in the weather-plagued eastern Midwest.
Basis along the Ohio River firmed thanks to movement slowed by the recent ice storm. Transportation was disrupted further this week when up to two feet of snow fell on parts of northern Indiana, courtesy of Lake Michigan.
Along the Illinois River basis jumped more than 20 cents, closing in on the option price due to a combination of falling freight prices and a sudden surge in export sales. Net new bookings hit a marketing year high for the third straight week, creating pushed at the Gulf, where basis is much stronger than average.
To read Bryce Knorr's complete weekly basis review, click HERE.
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