Spot basis bids for corn and soyabeans were mostly steady to firm at US Midwest processors and elevators on Tuesday amid slow country selling of both crops, dealers said. Farmers remained on the sidelines as futures drifted lower at the Chicago Board of Trade.
Many farmers already have contracted sales of corn and soyabeans for delivery during the next several months, while cash prices for the 2010/11 crop have drifted below price targets. Dealers said the phones were quiet and were expected to remain so ahead of Friday's Christmas holiday.
"People are in holiday mode. The country doesn't have much to sell, and end users don't have much need," said a rail corn broker in Kansas City. Some dealers said farmers might be more active sellers if cash prices had not fallen below price targets of $4 per bushel of corn and $10 per bushel of soyabeans.
Corn basis bids firmed by 5 cents per bushel in Toledo, Ohio, and by 2 cents in Kansas City. Soya bids rose by 2 cents per bushel in Toledo and on the Illinois River. US Agriculture Department late Tuesday said the corn harvest was 95 percent complete, compared with 92 percent last week. Shipping costs were steady/weak on Midwest rivers.
CBOT corn and soyabean futures were pressured by a firm dollar and disappointing export inspections, with soyabeans falling for the fourth session in a row and to the lowest level since November 13. USDA reported export inspections of US corn in the latest week at 17.765 million bushels, below trade estimates for 28 million to 32 million. USDA reported export inspections of US soyabeans in the latest week at 29.913 million bushels, below trade estimates for 45 million to 50 million.
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