Regional shifts in July crop basis

By Andi Anderson

Throughout July, Indiana has experienced significant variations in crop basis movements for both corn and soybeans, reflecting differing trends across the state's regions. As the marketing year draws to a close, these fluctuations have been particularly notable.

In East Central Indiana, the corn basis has remained relatively stable, with only a minor change of $0.01 per bushel lower than at the start of July. Over the past four weeks, the basis fluctuated within a narrow $0.04 per bushel range.

On the other hand, South Central Indiana saw a more dramatic shift. Here, the corn basis weakened by $0.27 per bushel since early July, with the basis ranging between -$0.20 and -$0.50 per bushel during this period. Indiana ethanol plants also reported a moderate weakening in corn basis, down by $0.06 per bushel over the past month.

The situation for soybeans across Indiana has been even more volatile. For instance, in Southeast Indiana, the soybean basis dropped sharply from $0.79 per bushel two weeks ago to just $0.04 per bushel more recently.

Similarly, Southwest Indiana experienced a significant decrease, with the basis weakening by $0.71 per bushel over the same period. Indiana soybean processors have also seen considerable fluctuation, with the basis falling from $0.84 per bushel in mid-July to $0.22 per bushel by early August.

Despite these regional differences, some common trends have emerged. Generally, the basis for both corn and soybeans has weakened across the state by early August compared to early July.

Additionally, the gap between the three-year average basis and the 2024 basis has narrowed over the past month. These patterns align with historical data, which typically shows a weakening crop basis from summer through the end of the marketing year.

Given that the 2024 basis was already lower than the three-year average in several regions, the less pronounced weakening trend observed in the past month is unsurprising.

Overall, as the marketing year comes to a close, Indiana farmers are witnessing varied but expected changes in crop basis, highlighting the importance of regional monitoring and understanding in effective farm management.

Photo Credit: gettyimages-studio2013