Corn and soyabean spot basis bids were steady to lower around the US Midwest on Tuesday as farmers sold modest amounts of both commodities, grain merchants said. Soya bids fell 5 cents and corn 3 cents at a large processor in Decatur, Illinois. Soya bids also eased on the Mississippi River and corn fell slightly in northern Illinois.
Farmers continued to market small portions of their corn and soyabean supplies during futures market rallies. Both commodities set 2-1/2-year highs on Tuesday, with soyabeans climbing after opening lower and then fading late amid pressure from rains in Argentina.
Corn futures rose for a fourth straight session as the rains in Argentina were seen aiding the developing soya crop but may be too late for the parched corn crop.
Many processors and elevators in the Midwest were limiting the hours farmers could dump supplies following a rash of fresh sales and an influx of supplies this month to meet January contracts. One dealer in the eastern Midwest said the elevator could accept no more corn until a train arrives to ship some of the grain later this week.
Farmers on average have sold more than half of their old-crop corn and soyabean supplies and only a small portion of the supplies they expect to harvest later this year. The farmers are bullish and wary about selling much of the new crop in case prices rise further.
A trade delegation from China will sign agreements in Chicago on Thursday to buy an unspecified amount of US soyabeans, the US Soyabean Export Council said. Barge freight costs eased on Midwest rivers, helping to relieve pressure on basis bids at river terminals. Soft red winter wheat bids were unchanged.
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