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Basis reaction mixed following bullish USDA acreage report

A market analyst says basis levels have had a mixed response to last week’s bullish USDA acreage report.

Naomi Blohm is with Total Farm Marketing.

“Depending on where you live, I’ve had some producers tell me that it has already widened out by about a nickel. Some places it stayed the same.”

She tells Brownfield it’s been interesting to follow cash prices in North Dakota, where farmers were still harvesting 2019 corn as recently as last month.

“Fall basis in North Dakota is improving dramatically for both corn and soybeans, and I think that’s just because of the lesser amount of crop that was planted there.”

Blohm says a lot of basis contracts are based off August Soybean and September Corn futures.

“So make sure that you are really on your toes the next couple weeks to get those priced out because a lot of times, historically speaking, this is our last chance hurrah to get the sales made.”

Unless, she says, the weather stays hot and dry throughout July.