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  • Nov 30th, 2005
  • Comments Off on US Midwest corn and soya firm on slow sales
Corn and soyabean spot basis bids were steady to firmer in the US Midwest early Tuesday as low cash prices and winter storms deterred farmer sales, grain dealers said.

Parts of Nebraska, Iowa, South Dakota and Minnesota were getting moderate to heavy snow. Illinois, Indiana and Ohio had light rain.

Grain dealers expect country movement to increase later this week as elevators begin accepting delivery of December-contracted corn and soyabeans. In the meantime, dealers talked to farmers about applying fertiliser and pricing strategies for next year's corn, soya and wheat crops.

Basis levels for both corn and soyabeans were expected to plateau as processors have ample supplies in storage.

"I think it's going to level off here a little bit and see if the board can do anything to get movement going," said an Indiana dealer.

River corn basis levels rose 1 to 2 cents per bushel while the soyabean basis rose 3 to 4 cents on stronger CIF values at the US Gulf.

CIF values for corn and soyabeans increased amid slow farmer selling and expectations that export interest would pick up after a lull last week due to the Thanksgiving Day holiday. Barge freight bids were mostly steady on Monday afternoon compared with last week.

Dealers continued to roll spot basis bids for corn to the Chicago Board of Trade March contract from the December contract, ahead of first notice day on Wednesday.

US winter wheat conditions declined for a fourth week in a row with 52 percent of the crop rated good to excellent, down from 55 percent last week and 76 percent a year ago, the US Department of Agriculture said late Monday.

At 8:44 am CST (1444 GMT), Chicago Board of Trade soyabeans were called to open 3 to 5 cents per bushel lower on worries about bird flu cutting feed demand and slow export sales. Good crop weather in South America was also weighing on prices, traders said.

CBOT corn was called to open 1/2 to 1 cent per bushel lower on follow-through technical selling after corn fell to new contract lows and fresh four-year lows in overnight electronic trade. Bird flu concerns and abundant supplies of feed grains are acting as an anchor on prices.

Copyright Reuters, 2005


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