Spot basis bids for corn and soyabeans were mostly flat in the US interior Midwest on Monday and farmer selling remained quiet as a drop in Chicago Board of Trade futures sent flat prices lower, dealers said. Farmers have been hesitant to sell much of the 2011 corn crop so far and there were no signs of "panic selling" despite a 7.5 percent drop in CBOT corn futures so far in November.
Rail corn basis bids fell by 3 to 5 cents in the eastern Midwest but trade was poorly defined ahead of the US Thanksgiving Day holiday, a broker said. Western rail corn bids firmed slightly, with the basis up 2 cents at Hereford, Texas. River corn basis bids were steady to firm while river soyabean bids were flat. Barge freight costs eased, with barges for this week on the Illinois River offered at 430 percent of tariff, down from 440 percent on Friday.
At Decatur, Illinois, the corn basis held steady at 15 cents over CBOT December futures, after falling by a dime over the course of last week. At the CBOT, corn, soyabean and wheat futures fell on Monday, with corn settling below psychological support at $6 a bushel as concerns about the euro zone debt crisis and the failure of US debt-reduction efforts encouraged traders to reduce risk.
Traders worry a global economic slowdown the will dent demand for commodities, including farm products. After the CBOT close, USDA said the US corn harvest was 96 percent complete, up from 93 percent a week earlier and ahead of the five-year average of 88 percent. Progress in Ohio continued to lag, with 69 percent cut, up from 51 percent a week ago.