Spot basis bids for corn and soyabeans were steady to lower around the US Midwest on Thursday, pressured by a modest bounce in farmer sales of both commodities, grain merchants said. The sales were fewer than those seen on Wednesday and farmers sold more soyabeans than corn so far this week, dealers said.
Bids also eased less dramatically than they did on Wednesday, when the basis for both crops fell sharply as futures soared to 30-month highs. Many farmers remain bullish in the wake of USDA's cut in corn and soyabean production and stocks. However, many growers have sold larger amounts than usual for this time of year and many wait until prices rise further before selling the rest.
Farmers, on average, have sold more than half of their corn and soyabean supplies from storage. Some have sold as much as 70 percent of their old-crop corn supplies and 80 percent of soyabeans, said a dealer along the Mississippi River. Many elevators, processor, river terminals and ethanol plants are well supplied following the pickup in sales this week and heavy deliveries so far this month as farmers meet January contracts. Both corn and soyabean futures climbed to new 2-1/2 year highs Thursday on support from a weak dollar and follow-through buying from the USDA report.
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