Corn and soybean basis remains weaker than normal in many parts of the United States. For example, in Central Indiana corn basis the first week of December was $0.45/bu. under March ‘24 corn futures. This is $0.36/bu. weaker than the three-year historical average basis level for the same time and region. In fact, this year’s corn basis levels are the weakest we have seen this late in the year since the beginning of the trade war in 2018. However, note that despite weaker than normal basis levels, corn basis in Central Indiana has strengthened $0.24/bu. relative to March ’24 futures in just the last two weeks.
Soybean basis in Central Indiana the first week of December was $0.47/bu. under March ‘24 soybean futures. This is $0.28/bu. weaker than the two-year historical average basis level for the same time and region. Again, these are the weakest soybean basis levels we have seen this late in the year since the 2018 trade war. However, notice that weaker than normal basis levels this year are still quite a bit stronger than 2018 levels given the disproportionate effect of the trade war on soybeans. Despite weaker than normal soybean basis levels, soybean basis has been steadily strengthening at a similar rate to the two-year historical average since October.
Source: purdue.edu
Photo Credit: gettyimages-studio2013
Categories: Indiana, Crops, Corn, Soybeans, Education