Spot basis bids for corn were steady to firm at most locations around the US Midwest on Monday due to good demand from processors and elevators while soyabean bids were mostly unchanged. Farmers booked some light sales of both commodities when the futures market peaked around midday but most farmers were reluctant to commit to any large sales.
Cash prices for both corn and soyabeans have risen sharply in the past few months, making farmers bullish that prices could rise even further before planting season. "They are kind of waiting to see what the US Agriculture Department outlook (conference) brings us at the end of the month and then go from there," a dealer in northern Ohio said.
Some grain shipments were being delayed along Midwest rivers because cold weather froze portions of the Illinois River. But few vessels were affected because of slow country movement in recent weeks. Barges were bid at 340 percent of tariff on the Illinois River, down from 350 percent of tariff on Friday.
Bids for barges were steady at 220 percent of tariff on the Mississippi River at St. Louis. On the lower Ohio River, bids for barges also were unchanged, at 250 percent of tariff.
Traffic was moving smoothly along railroads but there was talk that shipments could slow down later in the week if the cold weather persists. Corn bids on railroads rose by as much 8 cents per bushel on Monday.
At the Chicago Board of Trade, the March soyabean futures contract rose 3-1/4 cents to close at $7.40 per bushel on follow-through selling from news on Friday that a ProFarmer survey showed a sharp drop in soya acreage this year. The CBOT March corn futures contract closed unchanged at $4.02 per bushel. CBOT March wheat fell 2-3/4 cents to $4.58-1/2 per bushel.
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