CHICAGO: Corn cash basis bids were steady to lower at US Midwest processors and ethanol plants on Friday after the spike in futures to a five-month high triggered a round of farmer selling, grain merchants said.
Bids for the yellow grain also declined along the Illinois River, erasing gains in the basis seen on Thursday.
Chicago Board of Trade corn futures jumped to the highest levels since September this week, lifted by investment fund buying. Futures climbed above the target price of $4.50 per bushel in many areas, sparking sales at that level.
The corn basis declined by 2 cents per bushel to the lowest level seen so far in 2014 at a closely watched processor in Decatur, Illinois, while bids eased for the third time this week in Blair, Nebraska.
There was a steady stream of farmer deliveries in parts of the western Midwest, where snow and heavy winds stalled country movement earlier this week. Some delivery points were also holding weekend "dumping hours" amid forecasts for moderating temperatures before a return to bitter cold next week.
Soybean spot basis bids were firm at processors in the western Midwest and largely steady elsewhere amid a slower pace of farmer sales and good demand for soymeal, the dealers said.
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