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Spot basis bids for soyabeans were flat in the US Midwest interior on Wednesday but merchandisers noted a light pick up in farmer sales in a few locations after a three-day rise in Chicago Board of Trade futures. Basis bids for corn showed mixed changes as dealers continued rolling their bids to post against the CBOT March futures contract.
A few dealers reported light corn sales, but not enough to significantly dent the basis. Some sales stemmed from farmers pricing hedge-to-arrive contracts as the month ended and as December futures entered their delivery phase.
River bids for corn and soyabeans were steady to weaker as export demand at the US Gulf remained slow. Barge freight costs were unchanged from Tuesday. Skies finally cleared in parts of the eastern Midwest on Wednesday but storms were forecast for the southern and south-eastern Midwest this weekend. The storms were likely to cause flooding in Kentucky, Indiana and Ohio, further delaying the last of the corn harvest. At the CBOT, corn and soyabean futures settled higher after a move by central banks to ease global liquidity fears lifted the euro against the dollar, buoying prices of dollar-denominated commodities.

Copyright Reuters, 2011

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