US Midwest corn and soyabean bids fall

Spot basis bids for corn and soyabeans fell at river terminals around the US Midwest on Friday as rising shipping costs left grain dealers with less money to offer farmers for their crops.
Cash bids for corn and soyabeans were mixed around the interior. Some grain dealers were trying to boost supplies at elevators so they raised their bids for both commodities.
Other dealers lowered their bids on expectations of increased deliveries during the upcoming harvest.
Some farmers that still have not sold all of last year's crop booked light sales of corn to clear out storage bins ahead of harvest, a dealer in Illinois said. But country movement was mostly slow. Farmers were wary of committing to any more sales before they know how big their harvest will be this year, dealers said.
Hot and dry conditions around the growing regions have been stressing crops in the field. Informa Economics issued a crop production forecast for corn and soyabeans below its previous estimates for each commodity. The analytical firm forecast 2007 corn production at 13.09 billion bushels and soyabean production at 2.70 billion bushels, trade sources said.
Barges traded in a range from 410 percent to 425 percent of tariff on the Illinois River, up from a range of 380 percent to 390 percent of tariff on Thursday.
On the lower Ohio River, bids for barges rose to 400 percent of tariff from 350 percent of tariff. Barges also were bid at 400 percent of tariff on the Mississippi River at St. Louis, up 35 percentage points from Thursday's bids.
Grain dealers continued to roll their soyabean basis bids to the Chicago Board of Trade November futures contract from the August contract, which is set to expire on August 14. Most dealers skip the September contract because of volatility related to harvest.
At the Chicago Board of Trade, August soyabean futures closed 8 cents higher at $8.39 cents per bushel after Informa cut its production forecast. The November contract rose 6-1/2 cents to $8.61 per bushel.
CBOT September corn futures rose 2-1/2 cents to $3.26-1/2 cents per bushel, also on the new production forecast. September wheat futures rose 8-1/4 cents to $6.50 per bushel.