Corn basis widens. Soybean basis holds.

In February and early March we noted that basis behaves differently in large supply years. Typically it rallies into March but does not see further appreciation. Holding cash grain in these years would be a problem given monthly interest costs. This started our discussion of cash grain sales in early March and only using paper in some sort for ownership.

Corn basis has widened out dramatically in recent days, now -33 cents per bushel. That is a bit different than the later February level of -23 cents and the improvement into March futures expiration, -19.

Soybean basis has not set back too much at this time. Yesterday's -23 ¾ cent basis is near late February levels.

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