Soybean and, to some extent, corn prices continue to recover from the recent market lows. The University of Illinois reports July 2016 soybean futures increased $2 per bushel, or 23 percent, March 1 to May 13. Meanwhile, July 2016 corn futures increased 35 cents, or 10 percent, from March 31 to May 13. University of Illinois agricultural economist Darrel Good says, however, that soybean basis levels have generally weakened over the past two and a half months so that cash prices have increased less than futures prices. Corn basis has been variable, but generally steady, since late March. Helping the market in the U.S. is the lower South American production forecasts. That forecast brings the potential of improved export demand for U.S. corn and soybeans. USDA now forecasts U.S. corn exports during the current year at 1.725 billion bushels, 75 million more than forecast last month.
Source: NAFB News Service