Corn basis rises at Midwest ethanol plants and river terminals

Corn basis bids rose at some Midwest ethanol plants and river terminals, and on June 22 Absolute Energy showed a June delivery bid of $3.90 a bushel and -$0.25 basis. The firmer bids pointed to tighter nearby corn supplies as farmers finished planting and sold relatively little grain.

Basis usually runs stronger at end-user locations such as ethanol plants and river terminals because transportation costs to market are lower. In the cash-grain trade, spot bids were higher at some river terminals and interior grain facilities on June 2, and by June 6 bids were mostly flat to stronger at Midwestern elevators and processing plants, extending the firm tone.

Ethanol demand did not look overheated, but it stayed steady enough to support nearby procurement. The U.S. Energy Information Administration put weekly U.S. fuel ethanol production at 1,102 thousand barrels per day for the week ending June 12, close to recent weeks and consistent with plants keeping run rates intact. USDA’s June 11 World Agricultural Supply and Demand Estimates left its 2026-27 corn use in ethanol forecast unchanged and trimmed the 2025-26 estimate, a split that kept attention on near-term plant demand rather than a bigger forward pull.

Purdue University’s Center for Commercial Agriculture said basis at ethanol plants and river terminals strengthened across parts of the Eastern Corn Belt in 2025 and 2026, with some locations turning positive. That pattern has shown up in Indiana, Ohio and Michigan as plants and river points competed for prompt bushels, while local freight and barge logistics helped shape how far bids could move.

The current round of firming fit that same setup, with processors still buying, farmer selling muted, and end-user locations carrying the strongest bids. Traders will keep watching whether the premium holds into summer as ethanol runs, river movement and old-crop selling pace shift.