US Midwest bids for soya firm, corn weak
January 12, 2013
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.