Farmers holding cash grain are content to wait for the market to rebound before extending their sales, and at the same time, grain buyers are waiting to see what the full reaction to yesterday's data will have on futures, said Karl Setzer, analyst with MaxYield Cooperative in West Bend, Iowa.

"This is especially true in the ethanol market where margins have collapsed in recent weeks, and exporters are also hesitant to push for inventory given the fact almost every buyer is avoiding U.S. offerings in the world market," he added.

Meanwhile, snow moving across the central U.S. is limiting grain movement as well, with farmers unwilling to haul grain on slick roads.

Grain merchants are less aggressive in pushing prices, despite their need to gain ownership of grain, as they know supplies will be more plentiful based on USDA supply estimates.

In the meantime, a steady flow of commercial grain is enough to keep the U.S. supply chain at a comfortable level, Setzer said.

Processors and ethanol plants in the eastern Midwest report basis in a range from 14 cents under March futures to 19 cents over March futures, up 1 cent from Thursday, according to data from USDA.

Basis is the difference between cash and futures prices.

Barge basis levels at the Gulf for January corn shipment were 45 to 60 cents over March futures Friday, up 2 cents from Thursday.

-By Andrew Johnson Jr, Dow Jones Newswires, 312-347-4604 begin_of_the_skype_highlighting 312-347-4604 end_of_the_skype_highlighting,

andrew.johnsonjr@dowjones.com

(END) Dow Jones Newswires

January 13, 2012 12:52 ET (17:52 GMT)