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Eastern Corn Belt sees record corn basis

A short 2019 crop has led to record basis levels in some parts of the Eastern Corn Belt. 

“It was lousy, and we were still taking new crop corn into the month of December, in fact, some of our busiest days were early December.”

While Michigan Agriculture Commodities President Bruce Sutherland says farmers are happy to be done with 2019, he tells Brownfield basis levels in the region now are very strong.

“For corn—record basis levels.”

Driving part of that increase is demand for livestock feed and ethanol.

“The eastern belt right now is showing very strong values right now.  We’re actually seeing western corn coming into Ohio, Michigan, Indiana–being railed across Chicago to feed some of these needs.”

Sutherland says producers need to be aggressive taking advantage of early price volatility because come spring, he’s calling for a different record.

“I think we’re going to see near-record plantings of both corn and soybeans.”

Sutherland says he expects a greater swing toward corn acres and also a smaller 2020 wheat crop with firm prices into summer.