U.S. Cash Grains-Corn basis drops after rally spurs sales

Jan 10 (Reuters) - Corn spot basis bids fell at several
large U.S. Midwest processing plants on Friday as a rally tied
to a government crop report sparked the first significant round
of farmer selling so far this year, grain merchants said.
    * Bids fell 7 cents per bushel to the lowest level in about
a month at a closely watched processor in Blair, Nebraska, and
also declined in Decatur, Illinois; a processor near Chicago and
an elevator in western Iowa.
    * The sales came as the U.S. Agriculture Department
unexpectedly reduced the size of last year's corn crop in the
	
agency's final production forecast for the 2013/14 marketing season. Analysts widely expected USDA to increase the size of the crop, and the Chicago Board of Trade futures rose the most since April after the release. * Growers sold small amounts of their corn harvest before the report came out at midday and kept selling as futures jumped as much as 5 percent. Dealers at a large processor in central Iowa said the sales helped the location extend coverage through the next 10 days. * Soybean spot basis bids eased at a processor in Sioux City, Iowa, and held mostly steady elsewhere as futures rallied but not enough to spark significant sales. Basis values are quoted against CBOT futures in cts/bu: Current Previous Bid Bid Chicago, Illinois Corn processors +0 + H +2 + H DN 2 Corn elevators -5 + H -5 + H UNC Soybean elevators +0 + F +0 + F UNC Wheat elevators +10 + H +10 + H UNC Wheat processors +10 + H +10 + H UNC Decatur IL corn +12 + H +18 + H DN 6 Decatur IL soybeans +35 + H +35 + H UNC Burns Harbor IN corn -17 + H -17 + H UNC Burns Harbor IN soy -8 + H -8 + H UNC Lafayette IN soy +35 + H +35 + H UNC Toledo OH (port) Corn -14 + H -14 + H UNC Soy +12 + H +12 + H UNC
SRW wheat -10 + H -10 + H UNC Davenport IA (river) Corn -3 + H -3 + H UNC Soy -8 + H -8 + H UNC Evansville IN (rail) 15-car CSX corn +8 + H +8 + H UNC Cincinnati OH (rail) 3-car corn -1 + H -1 + H UNC Hereford TX corn +102 + H +102 + H UNC Columbus OH (rail) 3-car corn -1 + H -1 + H UNC Morris IL (river) Corn -15 + H -15 + H UNC Soybeans +29 + H +29 + H UNC Fort Worth TX corn +113 + H +113 + H UNC Blair NE corn -2 + H +5 + H DN 7 Council Bluffs, IA (elevator) Corn -8 + H -5 + H DN 3 Soy -5 + H -8 + H UP 3 Des Moines IA soy UNQ UNQ UNC Sioux City IA soy -18 + H -15 + H DN 3 NOTE: 0 = option price, UNC = Unchanged, UNQ = Unquoted, NC = Not comparable, DP = Delayed Price, H = March ---------------------------------------------------------------- LINKS: For U.S. forward basis spreadsheets, please double-click on: - CBOT corn report - CBOT soybean report - CBOT wheat report - U.S. grain barge freight values - U.S. Midwest cash grain PM - U.S. CIF Gulf Grain - U.S. FOB Gulf Grain (Reporting by Michael Hirtzer in Chicago; Editing by Bernard Orr and David Gregorio)

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