Spot cash basis bids for soyabean were steady to firm early on Thursday in the US Midwest, driven by processor demand, while corn bids were mostly steady, dealers said.
Crusher soyabean bids, which have had a firm tone all week, climbed another 10 to 20 cents in Iowa and Indiana, while bids at Lincoln, Nebraska, were up 5 cents.
Dealers in scattered locations posted 5 to 7 cents protection on corn and 7 cents on bids for soft red winter wheat in anticipation of a lower futures open at the Chicago Board of Trade. CBOT corn and wheat were called to open 3 to 5 cents per bushel lower after USDA raised its 2004/05 US corn crop estimate to a record 10.923 billion bushels, above analyst expectations.
USDA also raised its 2004/05 US all-wheat production estimate to 2.123 billion bushels, above trade estimates.
No protection was posted against soyabeans, which were called to open 10 to 20 cents per bushel higher. CBOT traders said USDA's data was bullish for soyabeans.
USDA put 2004/05 US soyabean production at 2.88 billion bushels, below the average analyst estimate. The government also cut 2004/05 soya ending stocks to 190 million bushels from 210 million.
Country sales for corn and soyabeans was quiet initially as producers digested the USDA numbers and awaited market reaction.
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