US corn and soybean basis is developing a sideways pattern.

Corn basis continues to follow the route of heavy supply years. In those years a generally sideways pattern in shown in the second half of the year. This is different than tight supply years which generally see further appreciation. Additionally, for Central Illinois, the current -0.25 basis is under the average of the prior four heavy supply years. At this time were at -0.21.

Soybean basis has been range bound for now three months. In heavy supply years this would continue in the second half of the year. This is different than tight supply years which generally see further appreciation. One small positive is the current -0.28 level for Central Illinois is better than the average of the prior four heavy supply years. They averaged -0.33 at this time.

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