US Midwest soya and corn basis firm on processor demand

Soyabean basis bids firmed on processor and export demand in the US Midwest on Friday and corn bids were steady to firm as processors looked for supplies to keep plants running through the weekend, dealers said.
Country movement of corn and soyabeans was in a post-harvest slump, and farmer selling was expected to remain slow until January. Farmers were putting away equipment and tilling fields and had enough money to leave crops in storage, dealers said.
"Nobody is doing anything, hardly," said an Indiana dealer.
Soyabean processors were eager to keep the crush going because of steady domestic demand and healthy profit margins.
"We're willing to pay a little bit for beans," said a dealer at an Iowa processor.
In addition to processors, export demand for corn and soyabeans was strong. China may have bought eight to 10 cargoes of US soyabeans this week, traders said. Grain shippers were paying premium prices for corn already loaded on barges south of Cairo, Illinois, on the lower Mississippi River.
However, river bids for corn on the upper Mississippi River were coming under pressure from a slight uptick in barge freight. River bids for soyabeans rose despite higher barge freight because of firmer CIF values at the US Gulf, dealers said.
Loan deficiency payments (LDPs) for corn have fallen since the start of the week and ranged from 40 to 45 cents per bushel on Friday.
The US government offers LDPs to compensate for low cash prices. Farmers can claim LDPs without immediately having to sell their grain. Instead, they can store the crop and sell it later when cash prices improve.
Traders continued to watch bird flu because a widespread outbreak could cut consumption of feed made from grains and oilseeds. China reported its seventh outbreak of the deadly H5N1 strain since October on Friday and the disease has surfaced for the first time in the Middle East.
Chicago Board of Trade soyabean futures were called to open 1 to 2 cents per bushel higher on talk that China was buying US soyabeans this week, traders said.
CBOT corn was called to open steady to 1/2 cent lower on pressure from the second-largest corn crop in US history.
CBOT wheat was called to open steady to 1/2 cent higher on a short-covering technical bounce following the lower close on Thursday.