Weak basis was a fact of life for farmers in 2008, but the soybean market, at least, is trying to end the year on the strong note. Nearby basis surged a dime above the option price along the Illinois River this week, thanks to strong demand for exports. China has been an exceptionally strong buyer recently, and falling futures prices give farmers little incentive to move beans, especially if they're inclined to wait until after New Years to sell for tax purposes.
Bean basis in the east and western Midwest from processors is weaker than average, in part due to slower crush. Still, basis remains better than last year, when rising prices convinced farmers to sell.
The only other basis to show strong improvement this week came in spring wheat. To read Bryce Knorr's complete weekly basis review, click HERE.
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