US Midwest soybean weaker, corn firmer

Spot soybean basis bids were steady to weaker around the US Midwest on Friday as a rally in futures triggered moderate farmer selling, while corn basis was steady to firm amid largely slow movement, dealers said. Corn and soybean futures rallied on Friday in response to a forecast for smaller-than-expected Argentine production and larger-than-expected export sales data, although soybeans ultimately closed lower, traders said.
The rally lifted cash values above some farmers' target selling prices of around $10 a bushel. A few dealers trimmed their soy basis bids by Friday afternoon. An eastern Iowa elevator dropped its soy basis by 7 cents a bushel and a western Ohio processor eased basis by a penny. Farmer sales of corn were sluggish on Friday despite the rally as cash prices at most locations remained below the $4-a-bushel level many farmers have pegged as a selling point.
Several dealers firmed their corn basis bids in an attempt to generate corn sales. An eastern Nebraska processor raised corn basis by 2 cents a bushel while a central Illinois processor increased basis by a penny. Buenos Aires Grains Exchange said 2008/09 corn output could fall 33-40 percent from a year ago and soybean output could fall 17-25 percent due to drought. Argentina is the No 3 soybean producer and No 2 corn exporter.
US export sales data was surprisingly strong. USDA put corn export sales last week at 1,112,600 tonnes, above trade estimates for 400,000 to 600,000 tonnes, and soybean exports at 1,329,000 tonnes, above estimates for 750,000 to 950,000.
Barge freight was weaker on Friday after rising earlier in the week as ice impeded movement on river Thursday, and 450 percent of tariff on the Mississippi River at St. Louis, down 25 points. Lower Ohio River spot bids held steady at 400 percent.
Strong weekly USDA export sales data and concern about Argentina's crops helped support CBOT grains and soybeans on Friday, traders said. Late profit taking and action in the options trade clipped soybean gains late. March corn ended up 3 cents at $3.90-1/2 a bushel and March soybeans ended down 3 cents at $10.09. CBOT March wheat rose 16 cents, or 2.8 percent, to $5.82-3/4 a bushel.