Spot basis bids for corn and soyabeans were steady to firm across the US Midwest on Thursday as farmers delayed sales and futures for each crop fell to the lowest levels in more than a month. Corn futures fell nearly 3 percent and soyabeans more than 2 percent in a broad commodities sell-off, with investors reversing positions of long the dollar and short on commodities.
But little "scare selling" noted in cash grains market as farmers were too busy planting corn to book sales of old- or new-crop supplies. Farmers occasionally increase sales if prices fall steeply. Corn and soyabean deliveries have also slowed in recent days due to active fieldwork in parts of Midwest.
Corn bids were firm at ethanol plants in Iowa and Nebraska, where the weather has remained largely dry and favourable for plantings. Bids for both crops were firm on the Illinois River, supported by a decline in barge freight. Midwest rivers have crested but high water levels continued to slow or halt barge traffic on the waterways. The Ohio River remained closed until next week, a barge trader said. Some farmers in Iowa and in western Illinois were sowing corn seeds late into the night due to behind-schedule plantings and forecast for light showers in the coming days.
US corn export sales last week fell 36 percent to the lowest point in 6-1/2 months as lofty prices and competition from cheaper alternative feed grains restricted demand, trade sources said on Thursday. Soyabean export sales hit a 14-month low, USDA data showed, amid pressure from cheaper supplies in South America.
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