Spot basis bids for corn and soyabeans held mostly steady around the US Midwest on Friday as futures rallied and farmers sold small portions of their crops, mostly for delivery earlier next year, grain merchants said. Corn bids were firm at a northern Illinois elevator while bids for both corn and soyabeans were otherwise flat at Midwest processors, ethanol plants and river terminals.
Dealers reported a fairly active week in the cash grains market as corn and soya futures each notched multiweek highs amid hot and dry weather in South America, which is stressing the developing crops in major exporters of Argentina and Brazil. Most growers closed the books on 2011 several weeks ago for tax purposes but were active sellers this week of supplies they contracted to deliver in the first months of 2011 or during the spring season. Light sales also noted of crops the farmers intend to harvest in the autumn of 2012.
Farmers are bullish after a strong finish to the year but are also taking a more conservative approach to marketing their crops - selling small portions during rallies to lock in profitable prices - after prices plunged to multimonth lows at the beginning of December. USDA early Friday put corn export sales last week at 345,200 tonnes, below estimates ranging from 400,000 to 600,000 tonnes. USDA put soyabean exports last week at 663,200 tonnes, above estimates of 300,000 to 600,000 tonnes.
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