Spot basis bids for corn and soyabeans held steady in the US Midwest interior on Friday, underpinned by an absence of farmer offerings, dealers said. Some grain offices were closed as part of an extended US Thanksgiving weekend. Grain markets at the Chicago Board of Trade also closed early on Friday.
One dealer said for tax purposes, farmers are not likely to sell much more of their 2011 harvests until at least January of 2012. Dealers say farmers have adequate cash and ample storage space, enabling them to hold their supplies off the market. Soyabean basis bids at river terminals have been rising over the past week on improved demand, while corn basis bids have shown little change. USDA reported export sales of US soyabeans in the latest week at 921,600 tonnes, above a range of trade estimates for 500,000 to 750,000 tonnes.
USDA pegged weekly export sales of US corn at 350,000 tonnes (old- and new- crop years combined), below trade estimates for 400,000 to 600,000 tonnes. USDA reported weekly export sales of all varieties of US wheat at 614,500 tonnes, the most in nine weeks and above trader estimates ranging from 300,000 to 450,000 tonnes.
At the CBOT, corn, soyabeans and wheat futures fell as Europe's escalating debt crisis had investors reducing risk assets and seeking safer items like the dollar. CBOT corn has pulled back 10 percent since the beginning of the month, settling at an 11-month low on Friday as traders worried an economic slowdown will curb demand for it and other commodities. Wheat settled at a 16-month low, while soyabeans reached a new 13-month low near $11 a bushel.
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