Soy basis slides at some Midwest processing facilities
SOYB•Spot soybean basis bids fell sharply at some Midwest processing facilities as improved weather was expected to accelerate harvesting. The basis dropped 115 cents per bushel at a Lincoln, Nebraska, processor and 70 cents in Cedar Rapids, Iowa.
1. Basis declines
Spot soybean basis bids fell sharply at processing facilities in parts of the Midwest on Monday, reversing recent gains in the western Midwest when rain delayed harvesting and tightened supplies. The basis dropped 115 cents per bushel at a Lincoln, Nebraska, processor and 70 cents at a Cedar Rapids, Iowa, processor; the corn basis in Cedar Rapids weakened 24 cents.
2. Weather and futures
Warm weather was allowing saturated soils to begin drying, and drier conditions this week were viewed as generally favorable for harvesting. Analysts raised concerns that recent rains could reduce grain and soybean quality. At 11:50 a.m. CDT, November soybeans were up 8-3/4 cents at $12.87 per bushel, while December corn was up 1/4 cent at $4.98.
