Basis Gains Leveling Off

Harvest progress and a rising futures market seemed to help slow the pace of basis gains. Over the past month, double digit gains in basis were common thanks to a slow harvest and slumping barge rates. But now, with the futures market marching higher and harvest hitting full stride in some parts of the country, basis levels have started to level off and even weaken a bit.

For corn, losses of 2 to 6 cents in basis were common in Nebraska, South Dakota, Iowa  and Wisconsin as crop harvest in these states jumped 20 percent for the week. In the southeast were harvest has reached completion, basis moved higher on the week with gains of 2 to 4 cents being fairly widespread.  

Soybean basis was mostly higher for the week as most regions of the country are wrapping up harvest. However, a run up in barge rates along the Upper Mississippi River caused bean basis levels to slide around key river markets. For the week, barge rates from Minneapolis to the Gulf were 11 cents higher while rates from Davenport to the Gulf increased 8 cents.

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