May soybean futures expired yesterday and the mean average cash basis at expiration at select locations rose to ¢0.23 from ¢0.13 cents when the March contract expired. This marks the second straight contract expiration where basis increased.
Much of the increase is due to none of the 13 sample locations having at negative basis at expiration. Only 4 of the 13 locations are within ¢0.10 of the spot price at expiration, versus 2 locations at expiration of the March contract.
As usual, the highest cash basis is in the gulf, where relatively higher demand as well as storage and other fees add to overall costs.