Corn and soyabean spot basis bids surged to the highest levels since before last year's harvest at a closely-watched central Illinois processor on Wednesday while bids firmed elsewhere as supplies tightened in the US Midwest, dealers said.
Soya bids jumped 15 cents per bushel while corn bids gained 7 cents in Decatur, Illinois, with bids for both crops hitting the largest premiums over benchmark Chicago Board of Trade futures in roughly eight months. US corn and soyabean supplies are the tightest in at least nine years and farmers are holding tightly to what remains as cash prices remain below record highs seen during last summer's worst drought since 1934. Modest gains in soyabean futures were not enough to entice any significant farmer sales.
A rainy spring has delayed spring corn plantings and fields in parts of Iowa, Nebraska and the southern Midwest are still too wet to plant. Some farmers in the areas where plantings are delayed have instead increased deliveries of the crops to local ethanol plants and processors, keeping a lid on bids.
Corn bids eased 5 cents per bushel in Blair, Nebraska, even as the basis for the yellow grain rose in Toledo, Ohio, and the southern US Plains rail market. Paraguayan and Brazilian soyabeans are set to be shipped to the United States, where stocks of the oilseed are unusually tight due to last year's drought in the US Midwest, industry sources familiar with the trades said.
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