Supplies of old crop corn remain more than adequate, and cold weather is increasing transportation costs. But selected processors around the Corn Belt are offering basis pushes this week in the eastern Midwest, trying to coax supplies out of storage.
Average basis in the eastern Corn Belt strengthened five cents a bushel in the latest week, with some locations fighting back above average levels for this time of year. Farmers remain reluctant sellers of cash corn below $4, while others are wary of selling to ethanol plants in the wake of recent bankruptcies in that industry.
Otherwise, basis was mostly flat for crops as winter dragged on, with winter weather hampering traffic. Processors are still not bidding up soybeans again in most locations due to poor crush margins depressed by hand-to-mouth buying of meal by feeders.
To read Bryce Knorr's complete weekly basis review, click HERE.
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