US FOB Gulf corn and soyabean basis offers were mostly steady on Monday, with higher CBOT futures putting the brake on demand, traders said. Hard and soft red winter wheat prices were also steady, with traders expecting futures in Chicago and Kansas City to rise on Tuesday amid declines in spring wheat ratings.
"It's going to be a wild and crazy day tomorrow," a trader said.
The weekly USDA crop progress report on Monday showed that condition ratings of spring wheat slipped 10 percentage points in the good-excellent category to 42 percent.
Minneapolis spring wheat futures led the rally in wheat markets on Monday amid concerns over crop prospects. Traders said corn basis offers were steady, with export demand taking a backseat after a sharp rally in CBOT futures fuelled by concerns over hot, dry weather in the Midwest.
The corn crop is in the critical pollination stage, and any lack of moisture and high heat could cut yield prospects. "Buyers are sidelined," a trader said, adding that demand would likely pick up after Wednesday's USDA monthly crop data.
In its weekly crop progress report, the USDA rated the corn crop at 63 percent good-to-excellent condition last week, down from 68 percent the previous week.
In routine business, Taiwan was seeking 56,000 to 60,000 tonnes of US corn for August-September shipment. Soyabean basis offers were steady amid slow farmer selling, but export demand was slow, traders said. "South America is cheaper," a trader said, referring to lower prices in Brazil and Argentina.
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