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Spot basis bids for corn and soyabeans were steady to firm at US Midwest processors, elevators and ethanol plants on Monday as futures for both crops rose modestly but farmers stayed on the sidelines, grain merchants said. Many growers are waiting for prices to rebound further before selling supplies from storage or committing to deliver crops during harvest later this year.
Corn futures climbed for the first time in seven sessions and soyabeans rose above the two-week low set last week. Most delivery points have enough supplies on hand to meet current needs and left basis bids steady. Corn bids were firm on the Illinois River and at a western Iowa ethanol plant. Soya bids rose at two processors in Iowa and were flat elsewhere.
Barge freight costs eased but high water levels continue to underpin shipping costs on the waterways. Some farmers started to prepare equipment ahead of the spring planting season. However, most growers are not expected to start sowing seeds for another month or more.

Copyright Reuters, 2011

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