Cash prices for corn for delivery in March topped $7 per bushel for the first time in 2-1/2 years on Tuesday at several locations in the largest producing state of Iowa but farmers are bullish and sold only a small portion of their old-crop supplies, dealers said.
Spot basis bids for corn, soyabeans and soft red winter wheat were mostly steady across the US Midwest, supported by slow farmer sales even as corn futures rose for the third day in a row to the highest price since July 2008. Elevators, processors, river terminals and ethanol plants have already bought supplies for delivery this month but road restrictions and muddy conditions have limited access to on-farm storage.
Many farmers also have enough cash to cover input costs of seeds and fertilizer and are not in a rush to sell supplies from storage or commit to deliver supplies during harvest. Soyabean bids rose 5 cents at large processor in Decatur, Illinois, while soya and corn bids were largely flat elsewhere. Corn and soyabean futures climbed Tuesday as investment funds bought the commodities on the first of the month, while wheat futures fell amid forecasts for rain in China's parched wheat belt.
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