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  • Dec 30th, 2005
  • Comments Off on US Midwest soya firms, corn holds steady
Spot basis bids for soyabeans were higher in the US Midwest Thursday as dealers boosted cash prices, while corn was steady following gains in the futures market on Wednesday, dealers said.

Soft red winter wheat basis bids were also easier as some millers dropped their bids after a wheat rally on Tuesday.

Country movement was limited to scattered corn sales while farmer sales of soyabeans were at a standstill ahead of the New Year's holiday weekend. Farmers sold during recent CBOT rallies when soyabean futures first moved above $6 per bushel. Some producers expected the market to move even higher in the new year.

"Even above $6 they're thinking things might get a little better yet," said an Ohio dealer.

Dealers also speculated there might be another burst of farmer selling of corn if CBOT March gets above $2.20 per bushel.

Soybean basis bids were mostly 2 to 4 cents higher, more than offsetting declines of 1/2 to 3 cents in the futures market on Wednesday.

Corn basis bids were mostly unchanged, resulting in higher cash prices from March corn futures rising 3/4 of a cent on Wednesday.

Unseasonably warm weather in the Midwest has melted ice on rivers but water levels remain lower than grain dealers would like to see.

Copyright Reuters, 2005


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