Spot basis bids for corn and soyabeans were mostly unchanged around the US Midwest on Friday amid light country movement, grain dealers said. Most farmers were unwilling to book sales of either corn or soyabeans at prices well below their target levels.
Growers have not given up their bullish hopes for either commodity despite recent weakness in the futures market. A farmer near Council Bluffs, Iowa, set a target price of $4 per bushel for corn, a dealer at an elevator in that area said. Cash prices for corn were currently at $3.04 per bushel in Council Bluffs.
The rising demand for ethanol was fuelling the optimism in the country about cash prices for corn while low acreage stoked hopes for soyabean prices. Some hot and dry weather around the region also was keeping farmers from booking any new sales because growers want to make sure they do not commit to selling more grain than they harvest, a dealer in northern Ohio said.
Although the soyabean basis was steady around much of the region, bids rose by 16 cents per bushel at a terminal along the Illinois River. Bids have fluctuated wildly at that location this week. Shipping costs were steady to higher on Midwest rivers.
Barges traded for 470 percent of tariff on the Illinois River, up from 460 percent of tariff on Thursday. On the Mississippi River at St. Louis, bids for barges rose to 435 percent of tariff from 425 percent of tariff.