Spot basis bids for corn and soyabeans fell at river terminals around the US Midwest on Friday, pressured by a spike in barge freight, while interior bids held steady amid slow farmer sales of both crops, grain merchants said. A lack of empty barges pushed up shipping costs on the Illinois and Mississippi rivers, limiting the amount of money dealers at river terminals were willing to pay farmers.
But many farmers delayed sales anyway as soyabean futures declined sharply on ideas of export soya business switching to South America. Corn futures rose sharply, setting a new 31-month high. However, cash prices in most areas remain below the farmer price target of $7 per bushel. Farmers also expect prices for each commodity to rise as supplies dwindle in the coming weeks and months. USDA this week forecast corn stocks to hit a 15-year low this year and soya stocks to stay at the same tight level as last year.
Corn basis bids fell 7 cents on the Illinois River and 1 cent on the Mississippi while soya bids fell 9-1/2 cents on the Illinois and 7 cents on the Mississippi. Soft red winter wheat bids were steady across the region. Egypt's GASC bought 55,000 tonnes of US SRW wheat from Perdue in its latest tender, results of which were released early Friday. USDA early Friday said exporters sold 210,000 tonnes of US corn to Mexico for delivery during 2010/11 marketing year. CBOT corn futures rose on support from the Mexico sale and wheat followed, with additional support from the Egypt purchase. Gains in the dollar also pressured soyabeans, which touched their lowest price since February 1.
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