Corn spot basis bids eased at processors and ethanol plants around the US Midwest early on Wednesday, pressured by recent spike in futures and modest pickup in country sales of the grain, dealers said. Soyabean bids were flat, with few sales of either soyabeans or corn seen early after futures drifted lower overnight.
Ethanol profit margins have waned in recent weeks, pressuring bids at the biofuel refineries. Bids eased 2-9 cents at plants across the region this week. Deliveries to meet existing contracts also pressured the basis as farmers were eager to satisfy December and January contracts before the holidays. Corn bids narrowly mixed at river terminals as slow movement and lower barge freight supporting the basis even as export demand remained slow. Soft red winter wheat bids were up 5 cents in Decatur, Indiana, and flat elsewhere in thin trading.
Many farmers are expected to delay large sales until a new tax year in the hopes that prices return to the lofty highs on summer. CBOT grain and oilseed futures seen opening lower as traders take profits after several days of gains. Corn was called to open 3 to 5 cents per bushel lower, soyabeans down 6 to 8 cents and wheat down 4 to 6 cents.