Corn basis was up this week by just under a cent. Soybeans saw an increase in basis to just over 3 cents as grain slumped throughout the week.
Corn basis along the river was up a cent and a half per bushel. A slight improvement considering last week’s lower than expected exports report. Ethanol also made a modest improvement this week and was up nearly a cent and a half.
Soybean basis in the river and along the Gulf saw the most movement from last week, up almost 10 cents a bushel. This was followed by a two and a half cent increase in soybean basis. Plant basis was off a half a cent .
Overall grains were slumped this week. Corn was down 38 cents, soybeans down 10 cents, and wheat was down 18.25 cents.
Brexit has had wide impacts on the grain markets. Throughout the week the polls were looking promising that the UK would remain in the EU. The result of the vote that took place yesterday indicated that the UK was in favor of leaving the EU. This was no less than surprising for the market; resulting in the pound dropping the lowest point since 1985. Sterling also dropped to a record low. We have been seeing surges in the gold where the market is up 5 percent, after rising as much as 8.2 percent. The strongest it’s been since March 2014. Oil sharply fell, down 5 percent.
The USDA crop report this week reported improving crop conditions with corn 75% good-to-excellent, and soybeans at 73% good-to excellent both improvements from last week’s report. The winter wheat harvest was reported to be 25% complete.
Exports reports correlated with what was expected for this week. Reported exports were 870 MMT of corn and 660 MMT of soybeans. Notable sales that occurred during the week occurred Tuesday when exporters sold 132,000 Metric tons of US Soybeans to China. Another 126,000 MT of US Soybeans was sold to unknown destinations. Additionally, Wednesday night, South Korea’s FLC bought 130,000 MT of optional origin corn while Taiwan’s MFIG bought 65,000 MT of optional origin corn. Regardless of price slide this week Asia continued to be proactive in exports.
Ukrainian crop tours showed yields of wheat could reach record highs in the area. Resulting in the crop estimate being lifted to 23.0 million from 1.1 million.
In the 8-14 day outlook there are signs of dryness and above average temperatures in the northern corn belt. Weather analytics company, Planalytics, released preliminary yield forecasts for corn and soybeans. Corn yield potential is reported to remain positive in the event it can retain moisture during silking. Soybeans have an above-trend yield forecast.