Spot basis bids for corn were steady to slightly firmer around the interior US Midwest Tuesday but fell at river locations, grain dealers said. Cash bids for wheat and soyabeans were mostly steady.
Dealers at some locations reported light selling of both corn and soyabeans after the US Agriculture Department released crop ratings figures on Monday afternoon that were worse than last week but in line or better than market forecasts.
The crop conditions dimmed farmers' hopes of a sharp futures market rally in the coming weeks. But most farmers were still reluctant to sell with cash prices for corn and soyabeans far below target levels.
"They are a little disturbed by the prices," a dealer in southern Ohio said.
Farmers were calling dealers with offers to sell at around $2.40 per bushel for corn and $5.90 per bushel to $6.00 per bushel for soyabeans.
The southern Ohio dealer said that farmers would probably close on those sales if prices rallied to those levels instead of removing them and raising their offers as they have done in the past.
USDA rated 56 percent of corn good to excellent, down from 59 percent last week. Soybeans were rated 53 percent good to excellent, down from 54 percent last week.
The spring wheat crop was rated 32 percent good to excellent, down from 34 percent last week. Dealers continued to roll their spot basis bids for soyabeans to the Chicago Board of Trade September futures contract from the August contract. Some dealers rolled their bids to the CBOT November contract.
At the Chicago Board of Trade, soyabean futures were called 2 to 3 cents per bushel lower. Traders said USDA's crop conditions report cast a bearish tone to the market. Forecasts for cooler weather should also weigh on prices. CBOT corn futures were called 1/2 to 1 cent per bushel higher. CBOT wheat was called 1/2 to 1 cent per bushel lower in a profit-taking setback to Monday's sharp gains.
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