US Midwest spot corn and soyabean basis bids were steady to firmer Wednesday as some dealers increased their basis to entice farmers to sell, but country movement remained mostly sluggish, dealers said. Dealers have reported light, scattered farmer selling in recent days as declining prices over the past two weeks changed some producers' expectations on prices.
For weeks, farmers had been aiming for cash prices of $4 a bushel or more for corn and $10 or more for soyabeans, but some have lowered their targets recently to about $3.75 for corn and about $9.50 or $9.75 for soyabeans, dealers said. Basis levels have been firming recently, but futures declines have more than offset any increase so cash prices have drifted lower.
Corn basis was up as much as 5 cents in Illinois and up as much as 3 cents in Iowa. Soyabean basis bids increased 5 cents in northern Ohio firmed by a penny at an eastern Iowa river elevator. Dealers continued to roll their basis bids to the Chicago Board of Trade May contracts from the March ahead of the delivery period on March futures.
CBOT grain and soyabean futures were called to open firmer Wednesday on follow-through from higher overnight action, but traders cautioned a firmer dollar and a falling stock market could drag on futures. Soyabeans were expected to open 2 to 4 cents per bushel higher while corn and wheat were called up 1 to 2 cents.
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