Nearly all interest in the United States is now on the approaching harvest. We have started to see some fieldwork in southern states, but this has been slowed by rains. Some regions of the Delta are now concerned with crop quality from heavy rains, especially on soybeans. Delays are not significant enough to cause panic buying in the market though, but this may change if conditions persist.
These delays are still causing basis values to firm in the Gulf and back into the interior market as buyers and processors push for coverage. Processing margins remain elevated and are causing these stronger bids. The most incentive is being paid on soybeans where crush margins are well over $2.00 per bushel, and in some cases, nearly $4.00 per bushel. String demand for US soy meal and oil and leading to these elevated margins. Buyers are concerned that farmers may be unwilling sellers this fall and getting bushels out of storage will be very difficult.