Spot basis bids for corn and soyabeans were mostly steady to weak in the interior US Midwest on Wednesday as the harvest of both crops expanded, replenishing supply pipelines, grain merchandisers said. Basis for both corn and soyabeans fell by 10 cents a bushel at Decatur, Illinois, home to a closely watched processor.
Biggest move was in Sioux City, Iowa, where the soyabean basis plunged by 91 cents as a processor dropped its premium for prompt deliveries. Farmers were delivering previously contracted soyabeans and corn to processors and other facilities. But fresh sales were scarce as farmers put the rest of their grain in storage, hoping for higher prices later on.
River bids were mixed, with the soya basis edging higher on the Mississippi River at Davenport, Iowa, due to export demand at the US Gulf Coast. Another exception to the weak trend was Hereford, Texas, where the rail corn basis firmed by 17 cents as shippers struggled to find enough grain to meet commitments.
"The bushels are not coming off as fast as usual," a rail corn broker said, noting that the harvest was off to a late start. The US Agriculture Department said the US corn harvest was 7 percent complete as of Sunday, compared with the five-year average of 16 percent. Early soyabean yield reports from Indiana and Ohio were above average, ranging from 40 to 60 bushels per acre, while harvest was just under way in Iowa. Corn yields were above average, several Midwest dealers said.