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Spot basis bids for corn and soyabeans held steady around the US Midwest on Friday amid scattered farmer selling, grain dealers said. A few farmers in areas west of the Mississippi River were booking light sales of old crop corn and soyabeans. The farmers that were selling were just trying to clear out storage bins ahead of the upcoming harvest.
Cash prices for both corn and soyabeans were still well below levels reached earlier this year so farmers were reluctant to commit to any new sales of this year's grain.
In the eastern part of the region, variable crop conditions made farmers cling tightly to any old crop corn or soyabeans they still had in storage bins. Some farmers were worried that they would have to use last year's grain to fulfil new crop contracts, a dealer in southern Ohio said. Shipping costs were mostly higher on Midwest rivers on Friday.
Barges traded for 700 percent of tariff on the Mississippi River at St. Louis, up 50 percentage points from Thursday's level. On the lower Ohio River, barges were bid at 625 percent of tariff, up from 600 percent of tariff on Thursday. Barges were bid at 550 percent of tariff on the Illinois River, in line with Thursday's bids.

Copyright Reuters, 2007

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