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Basis levels drying up along Mississippi River

Basis prices are softening along the Mississippi as river levels dry up.

University of Minnesota Extension grain market economist Ed Usset tells Brownfield the basis for corn at the Savage barge loading facility south of the Twin Cities is 25 cents below southwest Minnesota.

“That should be flipped. Southwestern Minnesota is normally 20 to 25 cents less than the river. Speaks to the problems at the river.

He says there’s also concern about a looming railroad strike.

“That would be a big issue. But you know what? I get the distinct sense that your average producer is tucking it away in their own on-farm storage as best they can, and they’re not too worried about moving it real soon.”

Usset does point out the basis levels for corn in southwest Minnesota have never been better.