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Spot basis bids for corn were steady to higher around the US Midwest on Wednesday as grain dealers tried to stabilise prices after a 5-cent drop in the futures market.
"The basis is getting a little better with the (futures) prices dropping," a dealer in southern Ohio said. Bids for soyabeans and wheat were mostly steady around the region, grain dealers said.
Farmer selling was expected to be slow on Wednesday, with most farmers waiting for rallies in the futures market to push prices higher. Some dealers in Iowa reported light selling of soyabeans from farmers who were expecting soyabean prices to fall in the coming weeks.
But most farmers were hoping for cash prices to rise by about 20 cents for soyabeans and 15 cents for corn before booking any new sales, dealers said. Farmers were in no rush to sell grain after booking corn and wheat sales in May that took care of their immediate cash needs.
Dry weather in the eastern part of the Midwest was allowing farmers to finish up planting tasks. Many farmers east of the Mississippi River had to replant some of their corn and soyabean crop after damp conditions damaged seeds. At the Chicago Board of Trade, soyabean futures were called mixed, 1 cent per bushel higher to 1 cent per bushel lower.

Copyright Reuters, 2006

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