Spot soyabean basis bids were lower at some US Midwest locations on Monday after a rally in CBOT futures and a pick up in movement, traders said. Rail corn prices were lower amid weak demand from poultry and cattle feeders, who seemed well covered to last through the holiday period. Truck values were mostly steady.
Dealers said rail corn basis bids in the eastern Corn Belt, especially areas in Ohio and Indiana, fell 1-2 cents a bushel. "There's not much demand Most end-users have bought enough to last them through the holidays. Some of them might have overbought because there are fewer cattle now," a dealer said.
The high cost of corn, which hit fresh 10-year highs last week, has led to quicker cattle slaughters to defray costs. Farmer selling of corn was scattered on Monday, with most farmers preferring to market their grain in the new year.
Soyabean basis bids were steady to lower, weakened in some locations by a sharp increase in CBOT futures and some farmer selling, dealers said.
Chicago Board of Trade January soya rose 10-3/4 cents to $6.66-3/4 per bushel on short-covering. March corn futures closed 2-1/4 cents higher at $3.70-3/4 per bushel, while March wheat closed 4-1/4 cents higher at $4.90.
Basis bids for soya dropped 3 cents a bushel to 22 cents under the CBOT January in parts of Ohio, and 3 cents on river locations in Illinois to 14-1/2 cents under. Barge freight bids were lower on the Illinois and lower Ohio rivers and at St. Louis by 15-20 percent of tariff.