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An AgWeb piece explains that soybean and corn basis has been erratic and widening, with barge freight rates pushed higher as low-quality corn accumulates in the Gulf. Consultants say storage timing and transportation costs are driving the aberrations.
Wider basis and higher barge rates lower farm-gate and upriver prices relative to Gulf values, affecting feed buyers' procurement costs and the incentive to store grain.
agweb.comLinda H. SmithNov 15, 2020After 284 past neutral logistics events, Corn moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.4%), and -0.2% over 20.
After 230 past neutral logistics events, Soybeans moved a median +0.4% over 5 sessions (55% higher; middle half -1.4% to +2.0%), and +0.1% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
