Corn basis for the 2018 crop has moved relentlessly stronger as the crop year has progressed. This week’s graph shows the basis as an example central Iowa elevator’s weekly bid versus the nearby futures contract.
Typically, the biggest strengthening of basis is in the 60 days right after harvest, but this year, the biggest move has been in June and July versus the July and September futures contracts, respectively.
Also, watch your new crop basis — the harvest basis in central Iowa for October/November delivery was recently 10 to 15 cents stronger than harvest last year and has gained 10 cents in June and July.
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