On average, US average corn basis gained 1 cent last week, while soybeans posted a 1-cent decline.Corn basis fund strength at ethanolplants this week with average basislevels up 2 cents a bushel. In the western Cornbelt, ethanol plants were especially aggressive at raising bids as basis levels at many key buyers moved 5 to 10-cents higher on the week.
At river markets, basis levels got a boost as well thanks to higher basis levels at the Gulf, which managed a 4-cent advance on the week.
The bean market continued its slump posting its third week in row of lower basis levels. Although basis levels on average were down only 1-cent a bushel, river markets posted a 2-cent loss on the week.
Strength on the Eastern Seaboard was apparent this week. Although high grain prices are taking their toll on cattle inventories and production, broker production continues to buck the trend showing 2% to 3% increases in broker numbers compared to last year. Soy processors were up 1 cent a bushel for basis on the week.
