Spot corn and soybean basis bids were mostly steady at US Midwest processors and elevators on Friday amid light, scattered sales of both commodities after a rally in futures prices, dealers said. Farmer selling of soybeans was a bit more active than corn as soybean futures rallied about 4 percent on Friday, lifting cash prices in many areas to around $9.50 a bushel.
"Farmers got a late Christmas gift today with that 36 cent jump on the board," said one Illinois dealer, referring to the rally in the January soybean futures contract. Corn prices remained below many farmers' target selling prices of around $4.50 a bushel, although a few dealers reported booking light corn sales on Friday. Grain dumps were largely quiet on Friday as icy weather made it difficult to deliver grain by truck. Most of the sales were done over the phone, dealers said.
Many farmers had enough cash on hand following a profitable year which saw grain prices rise to all-time highs. Many were resisting selling any more grain before January to avoid increasing their tax burden. A rally in crude oil and concerns about dry weather in South American production areas helped lift corn and soybean futures on the Chicago Board of Trade to the highest levels in seven weeks on Friday.
CBOT January soybeans rose 36 cents, or 3.9 percent, to $9.51-3/4 per bushel and March ended up 37-1/2 cents at $9.56-1/2. March corn rose 14-1/4 cents, or 3.6 percent, to $4.12-1/4 a bushel, the first spot month settlement above $4 since early November. CBOT wheat rose to a 2-1/2 month high on Friday on short covering and technical buying. The March contract ended up 17 cents, or 2.9 percent, at $5.99-1/4 a bushel.