Spot basis bids for corn and soyabeans were mostly steady to firm around the US Midwest on Monday, but country movement was light as a sharp decline in the futures market discouraged much selling, dealers said.
"The farmer's not going to move anything with the board break so it's been pretty quiet today," one Missouri grain merchant said. Merchants reported some country movement when grain futures rallied last week, but lower futures on Friday and on Monday took cash prices down and shut off movement.
Further weakness in futures could prompt some panic selling later this week, although some farmers may not want to add to their tax bill by selling more grain in this calendar year, merchants said. Wheat basis bids were mostly steady to higher on Monday amid slow country movement.
A Chicago area elevator firmed its wheat bid by 10 cents per bushel in an attempt to lure some movement to top off wheat stocks now that the bulk of its post-harvest corn and soyabean business was completed. Corn and soyabean bids were steady to firm along Midwest rivers, supported by slow movement and weaker barge freight, river merchants said.
On Monday, spot barges were bid 335 percent of tariff on the Mississippi River at St. Louis and 400 percent of tariff on the Illinois River, both down 40 points from last week. Spot barges were bid 340 percent of tariff on the lower Ohio River, down from 375 percent a week ago.
At the Chicago Board of Trade, December corn futures closed down 11-1/4 cents at $3.62-3/4 per bushel and March futures closed off 11-1/2 cents at $3.75-1/2.
Corn fell 3 percent amid declining crude oil markets, a firmer dollar and on prospects for a sharp hike in US corn plantings next year, traders said. Corn is being used more and more for ethanol fuel so the price tends to be influenced by moves in the crude oil market.
CBOT January soyabeans closed 17-3/4 cents lower at $6.59-1/4 per bushel, weighed down by weakness in corn and soyaoil markets and prospects for a bigger Brazilian soya crop. CBOT December wheat closed 1/2 cent lower at $4.99-1/2 per bushel while March wheat ended down 2-3/4 cents at $5.18 per bushel.
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