Tidbits, Q&A: Old Crop Soybean Basis 6/15/25

Q&A: Old Crop Soybean Basis

Question from a client:

Thanks for all the good info in your emails.

I wanted to share some local basis info and suggest you encourage farmers not to wait too long like I did to lock in basis.

I sold soybeans on a July futures contract last winter and waited for the basis to improve at our local processor in Mankato, MN over the past several months it has been improving going from -.40 a few cents at a time time -.35, -.25, -.20 etc usually staying at the new level for a week or so. It got to a 0 basis and I thought about locking it in but had read that buyers offer best basis when closer to needing the grain so my plan was to wait a little longer and if basis went positive lock it in. Also, I was thinking if basis widened a little I could lock it in and only lose a few cents. I had a couple busy days and didn’t have time to check the market. Between Tuesday evening and Thursday market close the basis went from 0 to -.35.

Any suggestions? Do I lock in now? Roll futures out and hope the basis improves again? What things can I watch for that would be an indication basis is going to change a large amount?

In the bigger picture futures can change 40 cents a day or even a few hours too. Thanks for any tips. Rich 

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