Corn futures continued to slide this week, hitting a new contract low everyday for the past seven days. Exports this week were 35.3 million bushels, which was within the range of expectations. So far, cumulative export inspections have reached 14.4% of the forecast for the season, slightly above the 5-year average for this time of the year.

Corn basis strengthened again this week. Cash sales continue to be slow as farmers work to complete the harvest with near ideal weather. The corn harvest is now 80% complete across the nation, with much of the harvest being stored in hopes of higher basis to come. Historically, basis tends to increase in November. Has the upward trend in basis begun? It would appear so, but don't be overly surprised if basis moves downward again when more grain is on the market.

Increasing corn basis was witnessed at many of the premium markets across the country. Clinton's basis increased 5 cents this week, leading the Iowa markets listed below. Other Iowa markets increased from 1 to 4 cents, with Eddyville losing a penny. Mendota, Illinois saw basis jump up 9 cents, putting it in line with last year's basis. Evansville, Indiana was also a large gainer, with a 12 cent increase in basis. While Minnesota has the lowest basis in the Midwest, markets such as Marshall and Bingham Lake picked up a few cents this week.

Soybean futures also declined this week on fears of weak international demand. Cumulative export inspections are now at 14.2% for the season, as compared to the 5 year average of 19.4% for this time of the year. With preparations for South American planting beginning, increased rainfall in dry areas of Argentina helped keep U.S. prices down.

Soybean basis strengthened, with some key markets in Iowa gaining as much as 12 cents this week. Evansville, Indiana saw solid gains in basis, while further East, in Toledo and Raleigh, basis was mostly unchanged. Lower barge rates, down 12% this week, added strength to basis along the river and at the Gulf.

With high rail rates, trucks have become a common substitute for rail in some instances. The recent decrease in diesel, down roughly 30 to 40 cents in the last two weeks, should provide additional support for basis, saving farmers a few cents. In addition to pushing basis down, lower trucking rates will make it more profitable to truck grain outside of your local area. Your increased vigilance and savvy marketing can do a lot to inspire local elevators to offer competitive bids, saving money for both you and your neighbors. Look for trucking opportunities on the spot market as well as for forward delivery. Forward delivery premiums have decreased slightly in the past week, but there are still some profitable opportunities out there that will make you appreciate any extra on farm storage that you might have.

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