US Midwest bids for soya firm, corn weak

January 12, 2013

Soya firm, Corn weak
Soya firm, Corn weak

Cash basis bids for soyabeans were steady to firm in the US Midwest on Thursday as farmer selling slowed a day ahead of key crop reports expected from the US Department of Agriculture, grain dealers said. Basis bids for corn were mostly steady to weak as end-user demand eased. Farmer offerings remained light despite a rally in Chicago Board of Trade corn futures to a two-week high.

Bids for both crops held near historically high levels for this time of year, supported by drought-reduced stockpiles and a lack of selling from the country. The soya basis firmed by 3 cents at Burns Harbor, Indiana, and by 7 cents on the Mississippi River at Davenport, Iowa.

For corn, Chicago processors dropped their basis by 6 cents and an Iowa ethanol plant lowered its bid by 3 cents. The corn basis fell 3 cents on the Illinois River at Morris, Illinois. USDA was scheduled to release updated US and world crop production estimates on Friday along with a report on US grain stocks as of December 1. The data was set for release at 11 am (1700 GMT).

Trade expects USDA to raise its estimate of the drought-hit US 2012 soyabean harvest, reflecting a slightly higher yield than previously thought. But strong demand from exporters and domestic processors should keep USDA’s forecast of US soya ending stocks at a nine-year low. For corn, the trade expects USDA to trim its estimate of the US 2012 corn crop to a six-year low, and raise its forecast of 2012/13 US corn ending stocks.

Courtesy: Reuters

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