Corn basis continues to gain ground slowly. Since the first of the month corn basis is up across the country, with considerable gains of 5 to 10 cents along the Eastern Seaboard and down the Mississippi. The rest of the country saw basis increase anywhere from 1 to 5 cents since the beginning of the month.

The good news is that basis continued to rally this past week, and a few key locations are seeing this year's basis meet or beat last year's corn basis at this time. Basis narrowed by six cents at Evansville, making the current basis a penny higher than last year's levels. Strong gains were seen at other key markets as well. Davenport's basis edged up 7 cents this week and Mendota, Illinois saw basis narrow by 5 cents.

The change in soybean basis has been more varied than corn. Northern Minnesota and North Dakota saw basis widen by a penny or two. The remainder of the country saw basis increase. Small gains of a penny or two were seen in the Southeast. Moving North into Illinois and Indiana basis strengthened by as much as 5 cents. Iowa had a strong showing this month, with gains of 5 to 10 cents. Supplies have begun to diminish in the East and basis is moving up aggressively, with Pennsylvania seeing basis improve by 10 to 15 cents.

While soybean basis has moved up considerably this month, we have seen fairly stable basis over the past week. Many key corn locations narrowed by a few cents or were unchanged. This is in contrast to corn, where most of this month's basis action has occurred recently.

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