The cash market was firm this week with corn basis increasing 2 ¼ cents and soybeans slipping only ½ a penny. Soybean basis at river terminals south of Iowa increased almost across the board, with strong export demand and the decline of southbound barge rates.
Soybean basis slipped a half penny on average across the U.S, with soy plants sinking 2 ½ cents lower on the week. River terminals basis provided the majority of the strength in the cash market although on average basis along the river was unchanged. Significant weakness at Minnesota and Iowa terminals was offset by steady gains at terminals to the south. Northern river terminals dropped their basis sharply as merchandisers remain unenthusiastic to accept grain with river freeze-up near.
Corn basis was firm at ethanol plants increasing 1 ¼ cents and also showed strength along the river where terminal basis jumped a penny on average. Corn basis at the gulf declined 2 cents on the week.
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