Basis levels for nearby corn delivery are strengthening as corn supplies tighten. Van Ahn and Company market analyst Kristi Van Ahn says the PNW market is forcing ethanol plants to compete for corn. “We used to see ethanol plants be able to outbid elevators by quite a bit and now, we are seeing how high we can go. In 15 days, basis went from 18 cents under to 15 cents over. That’s basis levels we’ve never seen in the Northern Plains.” The PNW market is trying to fill China demand. “North Dakota and South Dakota are leaders of the pack when you look at corn basis. Elevators and ethanol plants have always been competitors somewhat, but now, we’re seeing profitability levels for an elevator to rail it. If that’s there, ethanol plants are missing a bit of their market.”
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