Corn spot basis bids were narrowly lower at US Midwest elevators on Friday, pressured by the rising inverted futures spread that crimped margins for the commercial resellers of the yellow grain, dealers said. Bids eased 2 to 4 cents per bushel at elevators in Iowa and Ohio.
Each elevator was bidding against the Chicago Board of Trade May contract, with that contract's premium over the July contract rising to 24-1/2 cents, matching the contract high in the spread from earlier this week. Most processors and ethanol plants are bidding against the July so the elevators eased their bids to square their prices and maintain a margin in the event they sell to the end users.
Soya bids were sharply higher in Toledo, Ohio, following sharp gains to seasonal records across the region this week as processors tried to wrestle beans from farmers. But growers largely sat on the sidelines this week, content to delay old-crop sales until they can make progress in seeding their new corn and soyabean crops.
Some farmers were starting to plow fields or plant corn in parts of Iowa and Nebraska but fields in much of the region still needed a few days to dry before they can be planted. Warmer and drier weather over the weekend into early next week will boost US corn seedings that have fallen behind average pace due to excessive wet and cold weather, an agricultural meteorologist said.
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