Spot basis bids for corn and soyabeans held mostly steady around the US Midwest on Friday, supported by tight supplies even as sharply higher futures spurred increased farmer selling, grain merchants said. Old-crop cash corn prices rose to the price target of $7.50 per bushel at some locations, leading to sales at that level. Some growers also finished spring planting and hauled old-crop supplies to market, replenishing stockpiles at ethanol plants and processors.
But many end users of the yellow grain have little bought for July and beyond. Forecasts for corn supplies to shrink to their lowest in 16 years by the end of the summer bolstered bids despite the small spike in sales and deliveries. Some growers also held tightly to any corn and soyabeans remaining from last year's harvest in the hopes of higher prices.
US corn and soyabean futures soared on worries that wetter-than-expected weather next week will extend planting delays and reduce output for the autumn harvest. Planting remains slow across the Midwest due to soggy conditions, with further disruptions expected from another round of rain that agricultural meteorologists forecast will start this weekend.
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