Tight Farmer Holding Buoys US Cash-Grain Bids
The reluctance of farmers to sell stored grain supplies keep the cash-supply line tight for end users. Some cash merchants are allowing early delivery of March contracts to cover February needs, says independent broker Dave Marshall. Meanwhile, strong export sales to China are keeping soybean-basis bids firm as Asian buyers accumulate inventories amid crop threats in South America. Private exporters reported the sale of 175K tons of US soy to China for delivery in the 2012-13 marketing year. Basis levels at the Gulf for February soybean shipments were 76-78c/bushel above March futures, unchanged from Tuesday.