GeoGrain: Spot Soybean Basis On Par with Maximum Basis Levels
18 February 2012
US - Spot soybean basis since the beginning of January has stayed on par with the maximum basis levels seen in the last five years.
Over the past week the pace seems to be waning as
soybean basis on average has remained unchanged over the last seven days. A weak
export market for soybeans may be keeping the national average unchanged, as we have
seen a three cent drop out of the Gulf and a two cent drop at river terminals.
Basis at
these locations could find support into next week as the Chinese delegation has made
several purchases of soybeans during their visit to Iowa. During January, basis out of the
Gulf was averaging nearly a two cent gain daily helping basis to reach and exceed the
five year maximum levels.
Recently we have also seen an increase in barge rates along the Mississippi and Ohio
Rivers. Within the last couple of days the rates on these rivers have moved above their
five year average and sit at 38 and 41 cents per bushel, respectively.
Keep an eye on
barge rates after Friday’s collision between two barges near New Orleans, this could
affect river basis if any disruption to river traffic are long-lived.
TheCropSite News Desk
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