Spot corn and soybean basis bids were steady to weaker around the interior US Midwest on Wednesday, with some elevators and processors easing bids following a recent wave of farmer selling, dealers said. Corn and soybean bids were steady to firm along Midwest rivers, dealers said.
A rally in Chicago Board of Trade corn and soybean futures on Wednesday triggered light, scattered farmer selling of both commodities, but most farmers appeared to already be in "holiday mode" ahead of Thursday's New Year's Day holiday. Futures markets and grain dumps will be closed on Thursday for the holiday.
The rally in futures lifted cash prices to near $4 a bushel for corn and above $9.50 a bushel for soybeans, which were target selling prices for some farmers, dealers said. Others were waiting for corn to rise to $4.50 or more and for soybeans to rise to $10 or more before selling, they said. Moderately active country movement over the past week prompted some elevators and processors to soften basis bids.
One Illinois elevator lowered corn basis by 15 cents a bushel and soy basis by 20 cents after the recent sales. Grain elevators and processors continued to roll their soybean basis bids to the CBOT March contract from January. Barge freight was steady to weaker on Wednesday, helping underpin basis bids at Midwest river locations, dealers said.
On the Illinois River, spot barges traded at 390 percent of tariff, down from trades at 400 to 425 on Tuesday. Spot barges traded at 300 percent of tariff on the Mississippi River at St. Louis, steady with Tuesday's bids. Spot barge bids on the lower Ohio River held steady at 325 percent of tariff.
CBOT grain and soybean futures ended higher on the final trading day of 2008, lifted by a wave of new buying late. But concerns remain in the corn and soy markets about dry weather in South America. March corn futures ended up 10-3/4 cents, or 2.7 percent, at $4.07 a bushel. January soybeans rose 26-1/2 cents, or 2.8 percent, to $9.72-1/4 a bushel and March rose 27 cents to $9.80.