Spot soyabean basis bids softened in the US Midwest on Thursday, reflecting continued movement of old-crop soyabeans from producers and elevators, dealers said. Corn bids were steady to weak. Some soyabean processors rolled their bids to post against Chicago Board of Trade November futures after rolling from the July to the August futures contract earlier this week.
One reason for the shift is the widening inverse between old-crop July and new-crop November futures, which on Thursday neared $3 a bushel, premium July. Also, trade in nearby July Chicago Board of Trade soyabean futures was extremely volatile on Thursday, with the contract rising more than 50 cents a bushel before settling just 5-1/4 cents higher at $14.99-1/2 a bushel. "The buyers are looking to peg off November for more price stability," said Chad Hart, an agricultural economist with Iowa State University.
Crushers have seen an influx of old-crop soyabean movement this week as cash prices hung near $15 a bushel. Farmers and country elevators are looking to clear out the last of their 2012 harvest to avoid big discounts for autumn deliveries, Hart said. Corn bids eased in some locations following scattered cash sales. The basis at a processor in Blair, Nebraska, fell by 8 cents, at 75 cents over CBOT July futures. The rail corn basis at Hereford, Texas, fell by 10 cents.
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