US Midwest soya higher

16 May, 2009

Spot basis bids for soyabeans were steady to higher in the US Midwest on Thursday amid slow farmer selling and tight supplies, while corn was steady. Farmers held tightly to their supplies of old-crop soyabeans as CBOT futures marched toward $12 a bushel amid continued demand from China, and a poor crop in Argentina.
Soyabean basis bids at river locations in Illinois and Iowa rose 5 cents and 4 cents, respectively, on export demand. USDA's weekly export sales report showed that China bought at least two cargoes of old-crop soyabeans last week, and three cargoes of new-crop supplies. The purchases helped to allay concerns that Chinese demand was fading due to poor domestic crush margins.
Corn basis bids were generally steady; grain merchants reported scattered farmer selling. Rains in parts of the eastern Corn Belt continued to delay corn seeding, which supported CBOT futures. Spot barge freight was a touch higher on the Illinois River, but steady at St Louis and the lower Ohio River. CBOT July soyabeans settled 19-1/2 cents higher at $11.47-1/2 a bushel; July corn ended 1-3/4 cents higher at $4.28-1/4; July wheat up 4-1/2 cents at $5.93-1/4.

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