Soyabean spot basis bids firmed at US Midwest river terminals on Friday, while soya and corn bids held mostly steady at interior points amid scattered farmer selling of both crops, grain merchants said. Farmers sold more soyabeans than corn as futures for the oilseed rallied, with front-month soya touching the highest price since January 7, while corn futures eased.
Cash soya prices hovered around farmer target price of $10 per bushel in many areas, triggering sales at that level. Soya basis firmed on the river even as barge freight costs jumped sharply for the second day in a row. Tight supplies and strong export demand underpinned river basis while shipping costs on the rise due to recent increase in farmer sales.
Soya bids eased 3 cents at Sioux City, Iowa, processor and were mostly unchanged at other interior locations. A bearish USDA crop report showing higher-than-expected corn and wheat stocks pressured futures for both commodities and limited farmer sales.
Corn bids eased by 1 cent on the Illinois River. USDA ratcheted down corn stocks but not as much as analysts expected. Soft red winter wheat bids flat as rains washed out harvest activity in parts of eastern Midwest. More rains forecast across region next week while temperatures not expected to present heat risk for pollinating corn crop, a forecaster said on Friday.