Corn, soybean basis levels improve this spring

WEST LAFAYETTE, Ind. — Indiana corn and soybean basis levels continue to improve this spring, according to Nathanael Thompson, associate professor of agricultural economics at Purdue University.

“In recent weeks, corn basis has continued to strengthen steadily at many locations across the eastern Corn Belt,” he said in a report. “For example, corn basis in central Indiana for the second week of May was 22 cents per bushel under July 2024 corn futures. This is 13 cents per bushel stronger than the first week of March.”

Despite the increase, corn basis remains significantly weaker than the historical three-year average corn basis for the region.

Current corn basis in central Indiana is 35 cents per bushel weaker than the average corn basis level for the second week of May for the most recent three years.

Soybean basis has also been steadily strengthening.

“For example, soybean basis in central Indiana for the second week of May was 26 cents per bushel under July 2024 soybean futures,” Thompson said. “This is 9 cents per bushel stronger than the first week of March, but is 35 cents per bushel weaker than the historical two-year average soybean basis for the region.”

Farmers can use the Purdue Center for Commercial Agriculture Crop Basis Tool to check current corn and soybean basis levels and historical basis trends in their area.

Learn more about the tool at https://tinyurl.com/4ndrf2ny.