Spot basis bids for soyabeans rose at river terminals around the US Midwest on Friday but held steady at most interior processors and elevators, grain dealers said. Cash bids for corn were mostly steady at both interior locations and along rivers.
Farmer selling was slow on Friday as a sharp downturn in the futures market cut into cash prices for both corn and soyabeans. Most growers had enough cash on hand from sales they booked earlier this year so they were able to hold on their remaining old crop supplies and hold out for higher prices.
The weakness in the futures market caused some dealers to offer basis only contracts to protect themselves against further declines. The basis only contracts kept farmers from calculating exactly how much money they will get for their grain. The futures drop did make US soyabean prices more attractive to overseas buyer, which pushed CIF values higher and allowed river dealers to boost their bids. Although the interior soyabean basis was mostly steady, bids fell by 10 cents per bushel in central Iowa.
Shipping costs were steady to firm on Midwest Rivers. Barges were bid at 360 percent of tariff on the Mississippi River at St. Louis, up 10 percentage points from Thursday's level. On the Illinois River, bids for barges also rose 10 percentage points, to 440 percent of tariff.
On the lower Ohio River, barges were bid at 360 percent of tariff, in line with Thursday's bids. At the Chicago Board of Trade, March soyabean futures closed 102 cents lower at $13.41 per bushel, a 7.1 percent drop, while the May contract closed down the 50-cent-per bushel limit at $14.08-3/4 per bushel. Traders said funds were exiting the market.
The March contract was trading without limits because it was in the delivery period. CBOT March corn dropped 23-1/2 cents, a 4.2 percent fall, to $5.33-1/2 per bushel due to the drop in soyabeans and soyaoil. The May contract fell 20 cents to $5.47-1/4 a bushel. CBOT March wheat closed 21-1/2 cents lower at $10.92-1/2 a bushel while the May contract dropped 20 cents per bushel to $11.05.