With farmers holding tight and winter weather threatening to snarl transportation, soybean basis is surging in some areas, signaling it's time to consider spotting hedges or locking in basis on inventory.
Strong export sales and shipments to China, plus closure of the river system for winter, also are limiting supplies to the market, making basis an attractive sell in parts of the eastern Midwest. Basis along the Illinois River remains above option price, another sign of a strong cash market.
Farmers in the western Midwest likely will have to wait for supplies there to tighten.
To read Bryce Knorr's complete weekly basis review, click HERE.
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