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Strong demand supports higher basis for corn, soybeans in Eastern Corn Belt states

A graduate research assistant at Purdue University says strong demand is creating more basis opportunities for some corn and soybean farmers.

Josh Strine says regional variations are driving local pricing.

“We’ve seen that across the board,” he says. “Basis has increased for both corn and soybeans. It’s a greater increase than the historical averages would suggest, which is a positive sign.”

He tells Brownfield basis in Ohio continues to serve as a benchmark for the region.

“In the past, Iowa had set the basis in corn, but Ohio has produced less corn, and Iowa has produced more relative to historical averages,” he says. “This may be more of a supply-side driver in these local markets.”

Strine says farmers should continue to watch local bids and take advantage of all pricing opportunities. 

AUDIO: Josh Strine, Purdue University