Spot basis bids for corn and soyabeans rose at processors and elevators around the US Midwest Wednesday as grain dealers tried to spark some selling interest. Farmers have been reluctant to sell their newly harvested crops this fall. Most growers were trying to fill up their storage bins before they committed to any new sales.
Rainy weather around the region also has contributed to the slow country movement and harvest was falling behind the average pace in some parts of the region such as Iowa. A few farmers were booking sales of corn and soyabeans that they did not have room for in storage bins but they were only for small amounts, a dealer in southern Ohio said.
A processor in Cedar Rapids, Iowa, was offering a 2 cent per bushel premium for corn delivered by the end of the week. Cash bids for both corn and soyabeans have generally been stronger at processors because dealer at those locations were seeking supplies to keep the crush running at a strong pace.
Profit margins at processors are generally strongest during harvest season because prices tend to fall if farmers harvest big crops. Although the corn basis was mostly stronger, bids fell by 7 cents per bushel at a processor in Nebraska. Bids had risen by 10 cents per bushel at that location earlier in the week.
In overnight electronic trading, the e-cbot trend for corn was down 1-1/2 to 3-1/2 cents per bushel, while soyabeans were down 7-3/4 cents to up 1 cent and wheat was up 4 cents to off 1 cent. At the Chicago Board of Trade, soyabean futures were called to open 3 to 5 cents lower due to better crop weather in South America.
CBOT corn futures were called 2 to 3 cents lower due to seasonal harvest pressure. Wheat futures were called 2 to 3 cents higher on a technical bounce following a sharp drop on Tuesday.
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