Corn and soyabean spot basis bids were steady to higher around the US Midwest on Wednesday amid slow country movement of both crops, dealers said. Farmer selling was nearly non-existent even as futures rose at the Chicago Board of Trade, with farmers staying on the sidelines ahead of Friday's Christmas holiday.
Cash prices have dipped below price targets of $4 per bushel of corn and $10 per bushel of soyabeans, and farmers are content to wait and see if prices rise before booking any further sales. Soya bids rose by 5 cents per bushel at a processor in Sioux City, Iowa, while corn bids rose by 7 cents per bushel at a northern Illinois processor.
However, corn bids slipped by 2 cents per bushel at rail terminals in Ohio amid slow end-user demand, a broker said. "Usually around this time of year people are scrambling for corn. That's not happening this year," the broker said. Deliveries of both crops to processors and elevators were already slow ahead of the holiday, while rain and snowstorms across parts of the Midwest further dampened that traffic.
A blizzard is set to blanket the central United States on Wednesday, likely shutting roads, reducing visibility to near zero and causing power outages in its wake, forecasters said. At the Chicago Board of Trade, futures were supported by a weak dollar, firm crude oil, snowstorm-related delays and better-than-expected soyabean crush data. US Census Bureau on Wednesday said November soyabean crush at record 168.6 million bushels, above average analyst estimate of 168.4 million bushels.