Grain buyers sometimes use the roll from one futures contract to another as an opportunity to weaken their basis, but the move from December to March largely saw tightening, if anything. Farmers appear to be holding tight as flat prices plummet, and cheaper transportation costs make it a little easier for buyers to raise their bids.
Corn basis posted gains in both the east and western fringes for the same reason: supply. In the west, 10% to 30% of the crop is still in the field in some areas, while yields were down overall in the east.
Bids along the river system generally dropped however, as the shipping season comes to a close. On the parts of the river that are still open, the problem was low water, which was reported to be backing up barges around
Other transportation charges fell in line with lower fuel costs. To read Bryce Knorr's complete weekly basis review, click HERE.