Marketing

[rswfarms]

Say, I am interested what the current basis levels are in your part of the cornbelt. I would like to compare them to the 40 cent over Chicago we have currently at a local ethanol plant. It is a 100 Million gallon production plant, so a good size one. It was up to 45 cents over yesterday, but I see they dropped it back to 40 cents over Chicago. If you guys would post the best current basis levels in your area and if it is an ethanol plant, feed mill, or a local elevator I think this information could be useful for the actual cash/physical corn situation in the cornbelt states. I am very curious if your area is also starting to show a possible spot shortage of corn in the local markets. If it is already starting to show this given these very good basis levels, I am wondering what is going to happen come the May to June time period. Thanks in advance for posting your best local area basis levels!!!!!!

[roarintiger1]

NW Ohio.......two ethanol plants in the area. One is posting a bid of .30 over, the other is posting a bid of .40 over.  Local elevators are running .15 to .18 over.

[nwiafmr]

Local elevator basis.....

Corn basis......+.12

Soybean basis......+.03

[ND Farmer 1]

South Central ND:        Corn basis  minus 42...                               Soybean  basis minus 52                                                                                                                                          

[ND Farmer 1]

Thats the CHS Elevator..

[rswfarms]

Hey, thanks guys. Sounds like the ethanol plants are competing pretty well for cash/physical corn given this 40 cent over basis level. They must be still running a profit level given the current corn and ethanol prices. I talked to the corn buyer at one of our local 100 Million gallon plants and he said sourcing corn is getting more difficult in northern Iowa. Think I read someplace that just Iowa lost a total of 750 Million bushels of corn production off a trend yield in 2012 due to the drought. I finially think the spot corn market is starting to show all that lost corn production. As mentioned, I really wonder what the basis levels will be in the April to June time period.

[roarintiger1]

The ethanol plants maybe surprised at the amount of corn they could source if the futures quickly rallied 50 cents or so.   Of course, with the bin augers rattling, that might not happen either.

[Nebrfarmr]

+12 to +20 on corn, depending on the day, and where you look.   The ethanol plant gives better basis as the price of corn goes down, and as the price goes up, and they get enough corn, their basis comes closer to the +12 the Co-op is paying.

[Jed Stivers]

This is a Mississippi River port, no E-plants in this part of the world. The chicken houses are better but 100-180 miles away.

[hillfarmer1648172]

+24 in SC MN at ethanol plant.