Spot basis bids for corn and soyabeans were steady to weaker at locations around the US Midwest Monday amid slow farmer selling, grain dealers said. Dealers at some elevators and processors were not accepting any soyabean sales due to a sharp downturn in the futures price at the end of the trading day on Friday.
A spokeswoman for the CME Group said Friday that all futures trades would stand. Farmers could still set the basis level on soyabeans they wished to sell but they would not know the actual price until the futures market opened, dealers said.
Dealers at a facility in Columbus, Ohio, also were offering basis only contracts on corn sales. A few growers had expressed an interest in selling soyabeans before an expected lower open at the Chicago Board of Trade but were deterred by the basis only offers, a dealer said.
Foggy weather in some areas were slowing down deliveries of grain, an Illinois dealer. Most farmers avoid hauling grain when road conditions are poor. Some dealers rolled their soyabean bids to the Chicago Board of Trade March futures contract from the January contract.
Many elevators and processors will be closing early on Monday ahead of the New Year's holiday. Most grain facilities will be closed all day Tuesday. In overnight trading, the e-cbot trend for soyabeans was down 2 to 17-1/4 cents per bushel, corn was 1/2 to 2 cents lower and wheat was down 4-1/2 cents to up 7 cents.
At the Chicago Board of Trade, soyabeans were called to open 10 to 15 cents lower. Traders said the soya market was technically overbought and vulnerable to a downward correction. CBOT corn futures were called off 1 to 2 cents likewise in a setback from recent strength. Wheat futures were called 2 to 4 cents lower on follow-through selling from a lower close on Friday.