Spot corn and soybean basis bids were mostly steady to firm around the US Midwest on Wednesday amid sluggish country movement, while wheat basis bids were unchanged, grain merchants said. Firm demand from exporters at the Gulf helped underpin soy bids at some Midwest river elevators, dealers said.
Many farmers were resigned to wait until after the Christmas and New Year's holidays before making any more grain marketing decisions. Many had enough cash on hand and wanted to avoid increasing their tax burden this calendar year.
Recent rallies in Chicago Board of Trade futures prices have generated light corn and soybean sales in some areas over the past week, but the overall pace of new sales was dull.
CBOT corn was up about 33 percent from the more than two-year low posted on December 5, while soybeans were up about 10 percent from an 18-month low set on December 5. The firmness in the futures market prompted some farmers to raise their target selling prices from around $4 a bushel corn and $9 a bushel soybeans to $4.50 and $10, dealers said.
Frigid weather and icy roads in parts of the Corn Belt following a snow and ice storm on Tuesday also discouraged some farmers from moving grain on Wednesday. Barge freight flat to lower on Midwest rivers. On the Mississippi River at St. Louis, spot barges were bid at 375 percent of tariff, down 10 points from Tuesday.
Spot barges traded at 450 percent of tariff on the Illinois River, down from trades at 465 percent on Tuesday. Spot barges were bid at 375 percent of tariff on the lower Ohio River, steady with Tuesday. CBOT March corn futures closed 4-1/2 cents lower at $3.89-1/2 a bushel, pressured by profit-taking after rallying since December 5 by more than 90 cents to a six-week high.
January soybean futures rose 5-1/2 cents to $8.64 a bushel while March was up 6 cents at $8.69. Soybeans were supported by a weaker dollar, dry weather in Argentina, and a denial by Argentina that it was studying to cut soy export taxes. CBOT March wheat futures hit a one-month high and closed up 13-1/2 cents, or 2.5 percent, at $5.57-1/2 a bushel. Wheat was lifted by a weaker dollar, cold weather concerns for some the US Plains crop, and a good export tender line-up.