Elevators and processors continued to firm corn and soyabean basis bids in the US Midwest on Monday to encourage farmer sales amid weak cash prices, grain dealers said.
Farmers made their last big push this weekend to get corn in the storage bin, hampered only by early morning frost.
Dealers have begun to roll soyabean basis bids to the Chicago Board of Trade January contract from the November contract, which entered the delivery period on Monday.
With weak exports, cash prices in the western Midwest were under more pressure than prices east of the Mississippi River, dealers said.
Loan deficiency payments (LDPs) for soyabeans reappeared in Iowa, Missouri and Nebraska at 3 cents per bushel.
LDPs for corn rose to new highs in parts of the western Midwest but were steady to 2 cents lower elsewhere. Corn LDPs reached a new high of 50 cents in Iowa and rose 1 cent in Nebraska, Ohio and parts of Missouri. Corn LDPs fell 1 cent in Illinois, Indiana, Wisconsin and parts of Missouri.
The US government offers LDPs to compensate for low cash prices. Farmers can claim LDPs without having immediately to sell their grain. Instead, they can store the crop and sell it later when prices rise in the cash market.
In export news, China, the world's top soyabean importer, has slowed US oilseed purchases as worries over bird flu eat into domestic poultry consumption.
Traders and industry officials in China said on Monday there was also talk of default of one Indian soyameal cargo.
"Poultry prices are coming down nation-wide," said a soya trader in northern China. "Based on today's scenario, we don't think we will see more (soya) demand for November. And for December, they won't be aggressive."
This might lead to Chinese US soyabean imports slumping as much as 15 to 20 percent this season from a record 11.9 million tonnes last year unless US farmers compete against South American suppliers toward the end of the season in March.
US soyabean exports to China were about 35 percent behind the level seen one year ago.
Chicago Board of Trade soyabean futures were called to open 1 to 2 cents per bushel lower on harvesting a near-record US soyabean crop and good crop weather in South America.
CBOT corn was called to open steady to 1/2 cent lower on harvest of a near-record crop.
CBOT wheat was called to open steady to 1 cent lower on follow-through technical selling after the sharp drop on Friday triggered by fund selling.