US Midwest spot corn and soybean bids mostly steady

US Midwest spot corn and soybean basis bids were mostly steady to weak on Monday, with many locations posting protection following limit-down moves in futures to guard against further declines, grain dealers said. Dealers said they were taking 7 to 12 cents per bushel protection on corn and 10 to 20 cents protection on soybeans ahead of the start of electronic trading at 6:00 pm CST.
Dealers reported no farmer selling on Monday as corn and soybean futures on the plunged in response to negative data in several USDA reports released earlier in the day. The USDA forecast 2008 US corn production at 12.101 billion bushels, above expectations for 11.975 billion, and soy production at 2.959 billion bushels, above expectations for 2.913 billion.
USDA also forecast 2008/09 corn, soy, and wheat ending stocks and quarterly stocks above forecasts. Bucking the bearish trend was USDA's US winter wheat seedings forecast for 42.098 million acres, down 9 percent from 2008 and below an average of analysts' estimates for 44.292 million acres.
Rising barge freight costs pressured basis bids at Midwest river locations. Barge freight continued to edge higher on Monday as frigid weather this week and potential ice build-up was seen clogging shipping channels. Spot barges on the Illinois River traded at 500 to 525 percent of tariff, up from trades at 475 on Friday.
Spot barges were bid at 400 percent of tariff on the Mississippi River at St. Louis, up 25 points from Friday. Spot barge bids on the lower Ohio River rose to 375 percent of tariff, from 325 on Friday. Chicago Board of Trade grain and soybean futures fell sharply on Monday in response to bearish USDA data, plunging in tandem with a broad-based commodities sell-off.
March corn futures ended down the 30-cent daily limit at $3.80-3/4 a bushel, a 7.3 percent decline. The March through July 2010 contracts closed limit-down. Limitless January soybeans fell 83-1/2 cents, or 8 percent, to $9.54 a bushel. March ended down the daily 70-cent limit at $9.66, a 6.8 percent decline.