US Corn and Soy Basis Holds Mostly Steady as Harvest Gains Pace

what happened

Newsmetry API reported that cash basis bids for US corn and soybeans were broadly unchanged on Monday. Weather across most of the Midwest supported faster fieldwork, allowing growers to make up ground, particularly with soybeans, after wet conditions disrupted operations in late September and early October. The US Department of Agriculture was due to issue its revised weekly harvest figures on Tuesday, one day later than usual because Monday was a federal holiday.

December corn futures on the Chicago Board of Trade (CZ26) settled 3-1/4 cents higher at $4.83 a bushel. November soybeans (SX26) finished 4-1/4 cents lower at $12.87-3/4 a bushel.

Chicago corn processors posted +0 + Z versus +0 + Z previously; Chicago corn elevators were also +0 + Z versus +0 + Z. Soybean elevators were -20 + X versus -20 + X, wheat elevators were -20 + X versus -20 + X, and wheat processors were +5 + Z versus +5 + Z. Decatur, IL, corn was +0 + Z versus +0 + Z, while soybeans were -15 + X versus -15 + X. Both corn and soy at Burns Harbor, IN, were UNQ. Lafayette, IN, soybeans were -25 + X versus -25 + X.

At Toledo, OH (port), corn moved from -20 + Z to -15 + Z (UP 5), soybeans held at -30 + X, and SRW wheat improved from -30 + Z to -22 + Z (UP 8). Davenport, IA, corn stayed at -75 + Z and soybeans at -63 + X. Evansville, IN, 15-car CSX corn was -14 + Z versus -14 + Z. Cincinnati, OH, 3-car corn was UNQ. Hereford, TX, corn remained +120 + Z, while Columbus, OH, 3-car corn was -14 + Z versus -14 + Z.

Morris, IL, river corn was unchanged at -36 + Z, while soybeans fell from -30 + X to -35 + X (DN 5). Fort Worth, TX, corn stayed at +120 + Z; Blair, NE, corn was -10 + Z versus -10 + Z. Council Bluffs, IA, corn held at -27 + Z and soybeans at -55 + X. Des Moines, IA, soybeans were -40 + X versus -40 + X. Sioux City, IA, soybeans declined from -30 + X to -45 + X (DN 15). Basis values are quoted in cents per bushel against CBOT futures; UNC means unchanged and UNQ means unquoted.

why it matters

Basis measures the spread between a local cash grain price and the related CBOT futures contract. Broadly stable bids point to little overall change in local trading conditions, while the moves at Toledo, Morris and Sioux City show regional variation.

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