Corn and soyabean spot basis bids eased at ethanol plants and soya processors in Iowa while bids for both crops climbed modestly on the Illinois River on Thursday, grain merchants said. Bids elsewhere in the US Midwest were unchanged. Farmers were active across the US Midwest as corn futures notched a 29-month high and soyabeans a 27-month high on support from dry weather in Argentina, which delayed plantings there.
US farmers continued marketing crops for delivery early next year and during the 2011 harvest season as old- and new-crop corn prices topped $6 and $5 per bushel, respectively, and soyabeans $13 old-crop and $12 new-crop. However, some farmers are bullish and delayed sales, eyeing still bigger gains early next year, when deliveries of fresh supplies to market typically slow down considerably before the spring planting season. Lower barge freight costs helped to support basis bids for both crops on the Illinois River. Soya bids fell 3 to 5 cents at Iowa processors and corn bids by 4 cents at a western Iowa ethanol plant.
Soft red winter wheat bids were flat and sales slow, dealers said. Analysts have started trimming their Argentine corn and soyabean production outlooks due to dry conditions in world's second-largest corn exporter and No 3 soyabean supplier, helping to support futures for both crops in light volume at the Chicago Board of Trade.
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