As we jump into June, spot basis continues to steadily improve for both corn and soybeans. Just within the last week spot corn basis increased an average of three cents across the country. Basis levels today exceed the highest levels we have seen in the last five years by an average of 33 cents. As of today spot basis sits at an average of 16 cents above the July contract and 46 cents above the five year average.
Throughout last week, the Gulf made big moves increasing spot basis eight cents. The large push out of the Gulf also extended up the rivers where terminals increased basis an average of eight cents as well. Barge rates dropped slightly last week but current rates are recorded at least ten cents below the five year average depending on the river. Ethanol plants were also on the move this week increasing spot basis an average of four cents.
Spot soybean basis also continued to make gains this week up an average of two cents nationwide. Like corn, the Gulf was a big mover this week gaining nine cents. River terminals and crushing facilities also saw increases over the last seven days, up an average of five and two cents respectively.
Current spot basis levels for soybeans are around ten cents stronger than the five year average at 41 cents under the July contract. Basis during this time the last three years was slightly stronger and managed to gain an additional one to two cents throughout June. Watch for spot soybean basis to gain a few cents from now until the end of the July contract as this year’s soybean basis has followed a similar trend to that seen in the last five years.