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Corn and soyabean spot basis bids were steady around the US Midwest on Friday in slow trading ahead of the New Year's Day holiday, grain merchants said. Farmer selling was near non-existent even as corn set a new 29-month high and soyabeans a 27-1/2 month top.
Growers increased marketings late last week and early this week but retreated to the sidelines in recent days, content to defer any further sales until a new tax year. Some grain merchants also closed early ahead of Saturday's holiday. Few processors, elevators, ethanol plants or river terminals were in urgent need of supplies, while many farmers are expected to deliver fresh supplies early next month to meet January contracts. Lower barge freight helped to support bids along the Mississippi River while the corn and soyabean basis was flat at interior points. A weak dollar helped to prop up CBOT corn and soyabean futures Friday, with each gaining more than 2 percent.

Copyright Reuters, 2011

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