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Spot basis bids for US Midwest corn, soybeans and wheat were steady to firm on Monday on slow farmer selling following recent declines in futures prices, grain merchants said. Chicago Board of Trade grain and soybean futures were lower overnight and were expected to open lower on Monday.
Dealers at a few locations firmed their basis bids to encourage farmer selling, but most farmers appeared resigned to wait for an upswing in prices. Basis for both corn and soybeans firmed by 1-1/2 cents a bushel at a river location in eastern Iowa and by 5 cents in eastern Nebraska. Soy basis was up 10 cents at a processor in western Indiana and up 1 cent at a plant in western Iowa.
Wheat basis firmed by 40 cents a bushel at a western Ohio processor, but no selling was reported. Corn and soy producers are keeping an eye on weather in Argentina, where drought has cut production prospects and underpinned US grain prices at times. Rains should start Monday night and continue through Thursday in much of Argentina's pampas agricultural region, a weather expert forecast.
Chicago Board of Trade corn futures were down 3 to 7-1/2 cents during Asian trading hours, soy was down 2-1/2 to 11-3/4 cents, and wheat was down 1/4 to 5 cents. CBOT soybeans were expected to open 10 to 12 cents lower on Monday and corn was called down 5 to 7 on improved Argentine weather, lower crude oil and a firm dollar, traders said. Wheat was seen down 3 to 5, following corn and soy.

Copyright Reuters, 2009

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