CHICAGO: Corn spot basis bids were steady to higher across the US Midwest on Monday supported by few farmer sales despite Chicago futures trading at their highest in about 1-1/2 months, grain merchants said.
Corn bids gained 2 cents a large processor in Decatur, Illinois, where the basis was a premium to futures for the first time since early December. Two large Iowa processors, in Cedar Rapids and Eddyville, were also said to be in need of corn this week, the dealers said.
Chicago Board of Trade corn futures climbed for the third straight session in reaction to dry growing conditions in Argentina. However, Chicago prices are still hovering near a three-year low.
Many growers delayed sales in the hopes of selling at higher prices next year and to defer taxable income until the new year. Bitter cold weather also led to reduced deliveries of the grain to meet existing deals, with the farmers reluctant to haul truckloads of the grain to market.
Soybean spot basis bids were largely unchanged with many processors and exporters said to have purchased enough supplies through the first half of January.
Several elevators were expected to be closed for grain deliveries on Tuesday and on Wednesday in observance of the Christmas holiday.
Barge freight costs were unchanged in Midwest rivers in slow movement on the waterways ahead of Wednesday's holiday.
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