A delayed soybean harvest in Iowa has tightened nearby supplies so much that processors are bringing in beans by rail, an unusual move for the state, All Ag News reports, citing Wiesemeyer's Perspectives.
USDA says Iowa farmers had harvested just 3 percent of their soybeans by 27 September, against a five-year average of 17 percent, as persistent rain slowed fieldwork across parts of the western Corn Belt.
Crushers competing for the available beans have pushed nearby basis sharply higher. Earlier in the week Bunge's Council Bluffs plant offered $1 a bushel above futures for soybeans delivered by 2 October, while bids for October and November delivery were 25 cents under futures, a $1.25 spread across nearby periods.
The market should loosen as harvest advances, but the episode shows how quickly delayed fieldwork can create local processing shortages, and gives farmers able to deliver quickly an unusually strong basis.
Photo: Lynn Betts, USDA NRCS / Wikimedia Commons (Public domain)
Source: All Ag News
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