News

Soybean basis falls from recent highs as supplies reach crush plants

Soybean basis is weakening at crush plants across parts of the Corn Belt following several weeks of stronger bids driven by harvest delays.

Ed Usset with the University of Minnesota says there was especially strong basis in southern Minnesota and Iowa.

“Here in the last week, I saw 50 cents over the November contract, up to $1 over the November contract for different soy crushing facilities in Iowa and Minnesota.”

Arlan Suderman with Stone X Group says there were also increased crush premiums in other areas of the Corn Belt, like Ohio, eastern Nebraska and South Dakota. He says a drier forecast began weakening basis late last week, and better-than-expected soybean yields are helping replenish supplies.

“We’re hearing surprisingly high yields coming from the Dakotas and Minnesota running eight to ten bushels above expectations. That’s the good news, supply is flowing,” says Suderman.

Usset tells Brownfield the supply crunch seems to have passed, as two crush plants in southern Minnesota that were bidding 50 to 55 cents above the November contract are now bidding 20 cents under.

Suderman says farmers unable to harvest in the last few weeks missed out. However, Usset says increased U.S. soybean crush should continue to support high soybean prices beyond this short-term problem.

Hear Brownfield’s interview with Ed Usset.

Hear Brownfield’s interview with Arlan Suderman.