Corn basis bids were mostly higher across the US Midwest on Wednesday amid generally slow farmer selling, while soyabeans were mixed, traders said.
Most farmers were waiting to see if the CBOT rallies on Monday and Tuesday, fuelled by fund buying, would continue and push cash prices higher before committing to sales.
Farmers who have taken care of their cash flow needs for 2005 were content to keep soyabeans and corn in storage unless cash prices jump even further.
Dealers said farmers were calling to ask about prices but most were reluctant to sell.
Processors looking for soyabeans raised their basis by as much as 5 cents per bushel, bringing their cash price close to $6 per bushel, which many dealers have viewed as a key number to spur farmer sales.
But other soyabean processors who bought significant quantities of soyabeans over the last two days and are well-covered for the coming holiday weeks lowered their bids.
A snowstorm, which was expected to dump up to 5 inches of snow on parts of the Midwest, was expected to reduce grain movement during the day, dealers said.
Ice along parts of the Illinois River also slowed movement. Shipping costs have risen sharply along the river due to the icy conditions, and barge traffic is limited to one way on a 10-mile stretch of the river near Peoria, Illinois.
Loan deficiency payments (LDPs) for corn, which are offered by the US government to compensate for low cash prices, ranged from 13 to 24 cents in Midwestern states on Wednesday, compared with a range of 14 cents to 22 cents on Tuesday.
At 8:53 am CST (1453 GMT), CBOT soyabeans were called to open 1 cent to 3 cents per bushel lower on a technical setback after the rallies. Traders said a lower-than-expected November crush figure from the National Oilseed Processors Association also was bearish.
CBOT corn was called to open steady to 1/2 cent per bushel higher. CBOT wheat was called to open steady to 2 cents per bushel higher, following a firm overnight trend.
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