Spot basis bids for US Midwest corn and soybeans were steady to firm on Thursday as elevators and processors tried to encourage farmer selling, but marketing activity remained muted, dealers said. Wheat basis bids were steady to firm following a steep decline in the futures market on Thursday.
Declining grain and soybean futures prices on the Chicago Board of Trade this week have pulled cash prices lower and chilled selling interest among farmers, dealers said. Cash corn basis was up 1 to 2 cents per bushel in Chicago on Thursday, up a penny at a western Iowa elevator, and up 1 cent in central Ohio. Soybean basis firmed by 6 cents at a western Iowa elevator and 3 cents at a western Iowa processor.
Despite the firm basis, cash prices around the country remained below producers' target selling prices of around $4 a bushel for corn and $10 a bushel for soybeans, dealers said. Icy conditions after Wednesday's winter storm in parts of the eastern Corn Belt slowed movement around the region on Thursday. Many affected areas remained without power.
Ice on some stretches of Midwest rivers also slowed barge movement in the region. Barge freight rates eased on Thursday, which along with a decline in futures prices, gave corn and soy basis a firmer tone at Midwest river locations, river dealers said.
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