I went to a tree and started collecting branches. While I was collecting branches I open Build> Containers> and selected the wicker basket option. But when I clicked the ground to show where I wanted to build the basket my inventory was already overfull and there was a branch on the end of the cursor. This has happened before and left clicking the ground ordinarily releases the extra branch. Instead I ended up with a very small image of a wicker basket on the end of the cursor and neither right clicking nor left clicking would put it down and start construction. Escape didn't put the basket down either.
I logged out. I assume that will clear up the problem for now.